The Relationship between Remittance and Human Development in Mogadishu Somalia (2000-2009)

ABSTRACT 

The study investigated the relationship between remittance and Human Development in Somalia with the objectives of establishing the relationship between remittance and Social Development in Mogadishu and establishes the relationship between remittance and Household Poverty levels in Mogadishu. The study used a nonexperimental case study design using quantitative and qualitative approaches on a sample size of 399 respondents who receive and do not receive remittance in Mogadishu capital city of Somalia. Data was collected using a questionnaire and was analyzed using graphs, frequencies, correlation, regression and t-test techniques. The study found that remittance had a significant positive relationship with social development and poverty levels and it predicted 31.7% of the variance in social development and 21.4% of the variance in poverty levels. There was a significant difference between those who received remittance and those who do not receive remittance in relation to human development indicators of social development and poverty. The study recommended that the government of Somalia should provide for microeconomic policies and other enabling environments relating to remittance and its utilization in accessing education, health services, improved income and employment creation. Other studies need to examine the influence factors such as political instability, insecurity, inflation rate, exchange rates and remittance policies and their influence on human development in Somalia.

Table of contents

Declaration A ii

Declaration B iii

Dedication v

Acknowledgements vi

Table of contents viii

List of tables xi

List of Figures xii

List of Abbreviations xiii

ABSTRACT xiv

CHAPTER ONE 1

INTRODUCTION 1

Introduction 1

Background to the study 1

Statement of the problem 4

Purpose of the study 4

Objectives of the study 4

Research Hypotheses 5

Scope of the study 5

Significance of the study 5

Conceptual framework 6

Operational definitions of terms and concepts 7

CHAPTER TWO g

REVIEW OF RELATED LITERATURE 9

Introduction 9

Remittance 9

Social Development 14

Poverty 18

The relationship between Remittance and Human Development 20

Conclusion 27

CHAPTER THREE

METHODOLOGY 29

Research Design 29

Study Area, Population and Sample Size 30

Data Sources and Collection Methods 31

Instruments 31

Validity and reliability of the study instrument 32

Procedures of Data Collection 34

Data management and analysis 35

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION AND

DISCUSSION 36

Introduction 36

Presentation of data set 36

Response rate 36

Distribution of gender by receipt of remittance 36

The distribution of respondents’ age group and income per day 38

The level of education of the respondents 39

The relationship between remittance and social development in Mogadishu 59

Correlation analysis 59

Regression results between remittance and social dev~opment 62

t- test results 64

The relationship between remittance and Household Poverty levels in Mogadishu. 69

Correlation analysis 69

Regression results between remittance and poverty levels 71

t- test results 73

CHAPTER FIVE

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 80

Introduction 80

Summary of findings 80

Remittance and social development 80

Remittance and poverty 81

Conclusion 83

Recommendations 84

Recommendations for further studies 85

REFRENCES 86

APPENDIX I : TRANSAMITTAL LETTER

APPENDIX II: QUESTIONNAIRE FOR HOUSEHOLDS ii

APPENDIX III: TIME FRAME vii

APPENDIX IV: PROPOSED BUDGET viii

APPENDIX V:TABLE 4.5 SHOWING FREQUENCY AND PERCENTAGES

SCORES OF REMITTANCE ix

APPENDIX VII: TABLE 4.13: SHOWING POVERTY LEVEL RESULTS x

APPENDIX VI: TABLE 4.7 SHOWING SOCIAL DEVELOPMENT

RESULTS xi

APPENDIX V: CURRICULUM VITAE xii