Information and communication technology (ICT) and agricultural sector productivity: empirical evidence from Somalia

Abstract

Agriculture is the backbone of Somalia’s economy, contributing more than 75% of GDP and 93% of total revenue. Using an Autoregressive Distributed Lag (ARDL) model covering the period from 1990 through 2019, this study examines the relationship between ICT adoption and agricultural productivity in Somalia. The results show that ICT has a positive and significant relationship with agricultural productivity, indicating that ICT adoption contributes to higher production efficiency, greater land productivity, and improved labour productivity. Conversely, environmental degradation and population growth adversely affect agricultural productivity, suggesting that increased emissions and growing populations negatively impact the sector. The short-term results of the error correction model (ECM) indicate that ICT and population growth show a statistically significant positive correlation with agricultural productivity in the short term. In contrast, environmental degradation shows a positive and statistically significant relationship with agricultural productivity. This might be due to short-term adaptation strategies or increased input use. The study suggests important policy implications for stimulating agricultural development in Somalia. The government should promote investment in ICT-related infrastructure in Somalia, as this has the potential to enhance the performance of the country’s agricultural sector.