The Price of Corruption: A Consequence-based Analysis of Economic Growth in Somalia

The Price of Corruption: A Consequence-based Analysis of Economic Growth in Somalia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Price of Corruption: A Consequence-based Analysis of Economic Growth in Somalia Abdihakim Omar Abdullahi, Idiris Sidali Mohamed, Abdikani Yusuf Abdulle, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7333971/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Corruption acts as a major barrier to Somalia's overall social, economic, and political progress. Tackling corruption requires holistic, multi-pronged approaches that strengthen transparency, accountability, and the rule of law across all sectors. Thus, this study examines the intricate relationship between corruption and economic growth in Somalia, emphasizing the profound impact of corrupt practices on institutional integrity and economic development. By employing a comprehensive analysis of the theoretical frameworks and empirical studies, this research highlights how corruption diverts resources from productive activities, undermines institutional quality, and distorts market dynamics. The paper utilizes a dataset spanning from 2005 to 2021, applying vector autoregression, the Granger-causality test and Johansen co-integration test to investigate the causal relationships and long-term associations between Gross Domestic Product (GDP), Foreign Direct Investment (FDI), and corruption. The findings reveal that corruption has a significant and negative impact on Somalia's economic growth, deterring foreign investment and exacerbating poverty and inequality. Despite ongoing efforts to combat corruption, it remains pervasive, hindering Somalia's progress towards stability and prosperity. This study underscores the urgent need for enhanced governance structures, transparency, and accountability to mitigate the detrimental effects of corruption and foster sustainable economic growth in Somalia. *Clinical trial N/A Corruption GDP FDI VAR Somalia Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7333971","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":531212946,"identity":"5d0d3e54-f86e-4048-b528-e064485573de","order_by":0,"name":"Abdihakim Omar 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