The contribution of equity markets to the economic growth of Somalia:
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Date
2015-03
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study sought to examine the role played by equity markets towards the economic growth of Somalia. The study objectives were; to identify the various equity markets that affect economic growth in Somalia. To establish the challenges faced by equity markets in Somalia and to examine the impact of equity markets on economic growth of Somalia. A cross sectional survey was used in the course of the study. Both qualitative and quantitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine the role played by equity markets towards the economic growth of Somalia. The study population involved 58 participants where 12 managers of the company, 16 workers, and 30 were the remaining local peasants were available. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected from primary and secondary sources using questionnaires and interviews. After collecting data, the researcher organized weIl answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The study found out that with wealth effect, stock exchange may also affect the economic growth in Somalia since people with shares will see a fall in their wealth. If the fall is significant it will affect their financial outlook. If they are losing money on shares they will be more hesitant to spend money; this can contribute to a fall in consumer spending. The study concludes that when the overall global economy is down, goods and services cannot he sold overseas as the\ used to. It causes revenue to decline and as a result, the decline in the stock market is observed. If foreign stock exchanges start failing or experience sharp declines. A ripple effect can be anticipated which ultimately results in the overall drop in a global stock market. The study recommends that the government and other concerned stakeholders need to improve on the global economic conditions it encourages investment and thus improves on the market of stocks. This is because if global economic conditions are not checked, they may hinder economic growth over time. It is therefore recommended to address this. It also recommends that there is need to reduce the amount of principal owed on homes to below the mortgage debt still owed, and then let the parties share in whatever upside can be earned on the homes. But, no plausible mechanism to get this accomplished.
Description
A Research Report to be submitted to the Faculty of Business and Management in Partial Fulfillment of the Requirements for the Award of Bachelor of Arts in Economics of Kampala International University
Keywords
Equity markets, Economic growth, Bosaso stock market exchange, Puntland) state