The influence of climate change on crop production: Evidence from Somalia

The study examines the effect of climate change on crop production in Somalia for the period 1990 to 2022 obtained from the World Bank and FAOSTAT. Initial assessments were conducted on the data using various techniques, including the Correlation Matrix, Augmented Dickey-Fuller test, and Phillips-Perron unit root test. The findings from both the Bounds test and Johansen test demonstrate the existence of cointegration within the model. To estimate the parameter values of the regression model, three methods were employed: the Autoregressive Distributed Lagged (ARDL) model, Dynamic Ordinary Least Squares (DOLS), and Fully Modified Least Squares (FMOLS). The study's results demonstrate a positive and significant influence of foreign direct investment (FDI) on crop production. Specifically, the impact of FDI is found to be more pronounced in the long term compared to the short term. Similarly, the study finds that the harvested area and labor force have substantial positive impacts on crop production, both in the short run and long run. Based on the ARDL model results, the study finds that rainfall and temperature do not have a beneficial influence on crop production in both the short run and long run. This is becuase, Somalia is considered as one of the most susceptible countries to the effects of climate change globally. The paper advises Somalia's government to focus on developing heat-resistant crops to counter the opposing effects of temperature on crop production and ensure food security. It also requires a comprehensive agriculture funding-framework including emergency assistance.