Abstract: The study seeks to examine the role of the central bank on the economic development of Somalia: a case study of central bank of Somalia, Mogadishu. The study objectives will be; to ascertain how central bank as a regulation affects economic development of Somalia, to determine whether financial market development affects economic development of Somalia, to assess how central bank as a government banker affects economic development in Somalia and to examine whether the monetary and fiscal policies affects economic development in Somalia. The study will be carried out with a purpose of identifying the roles of the Central Bank towards the economic development of Somalia, the level of economic development in Somalia and the extent to which the Central Bank has contributed to economic development in Somalia. The study will follow a cross sectional research design. The qualitative and quan-titative approaches will be employed based on central bank of Somalia, Mogadishu. The quantitative technique will be used to collect and analyze data on the role of central bank and economic development in Somalia. The target population of 140 will be selected and it comprises of 20 top authorities of Central Bank, 45 other employees of the bank, 55 Offi-cials from the Ministry of Finance, Somalia and 120 Local community members. The sample size of the study consists of 150 respondents of the target population. The sample will be purposively and randomly selected. The top authorities of CBS will be purposely selected because they head the bank and thus will have knowledge about the role of central bank on economic development in Somalia. The local community members will be randomly selected to give each an equal chance of representation. All respondents will be assumed to have vital information on the subject matter of the research. Respondents who will be willing to partic-ipate will be approached. The study will involve use of interviews and questions to gather data on the study variables. He conclusions were based on the objectives of the study that role of central banks drivers had a significant influence on economic development of Soma-lia. The results established that central banks drivers were found to significantly and posi-tively influence economic development of Somalia. When all the stated variables were tested in the regression model they were found to have a significant relationship between them-selves and economic development of Somalia. Government banker was the driver which had the highest influence on economic development followed by regulation and monetary poli-cies. The findings of the study established that role of central bank of Somalia were operat-ing under a highly competitive environment between them. However, this moderate result revealed that there were all variables which were influencing the economic development of Somalia. It was concluded that economic development of Somalia needed to embrace role of Central bank of Somalia drivers in order to achieve sustainable development advantage. The results obtained from this study were important in terms of reflecting the situation on the usage and role levels of central bank drivers of economic development of Somalia in com-mercial banks. The results further revealed a positive relationship between the individual role of central bank drivers and economic development. The results provide an insight to banks managers on the importance of role of Central bank with all commercial banks areas.
Title: INFLUENCE OF CENTRAL BANK GOVERNANCE ON ECONOMIC DEVELOPMENT OF MOGADISHU SOMALIA
Author: Awil Aden Mohamud, Aaron Mukhongo
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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