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    How was the effect of bilateral trade and foreign direct investment on Somalia’s economic growth: Roles of Turkey
    (İstanbul Ticaret Üniversitesi, 2022) Abdullahi Hersi, Sumaya; Tekeoğlu, Aşkım Nurdan Tümbek
    The World Investment Report (2010) states that FDI stocks increased more quickly than exports and imports between 1990 and 2009, surpassing even the rise of intermediate goods exports/imports. Since the 1990s, there has been a sharp growth in regional trade agreements (RTAs)2, many of which have investment-related clauses, which has coincided with this sharp surge in FDI flows. Therefore, the primary goal of this research was to determine how foreign direct investment and bilateral trade affected Somalia's economic development. Turkish roles The data on bilateral trade, interest rates, government spending, exchange rates, gross domestic product, and terms of trade are taken from the Bank of Somalia, however the parameters for foreign direct investment are obtained from the Somalian ministry of planning and economic development. this study used time series analysis with quarterly observations from the first quarter of 2006 through the fourth quarter of 2020. The study further evaluated for causality, cointegration, and carried out other time series tests. According to the Granger causality test, bilateral trade has a positive impact on GDP even though foreign direct investment does not. However, bilateral trade and foreign direct investment both work together to boost the nation's economic growth. Despite the fact that the study's results indicated there is no correlation between GDP and foreign direct investment. To promote economic growth in the future, it is necessary to manage governmental spending, interest rates, exchange rates, and trade terms.