Abstract

This study investigates the socioeconomic determinants of per capita expenditure in Somalia using data from the Somalia Integrated Household Budget Survey (SIHBS) 2022. A multivariate ordinary least squares (OLS) regression was employed to analyse a sample of 6,808 households. Results indicate that education, urbanization, and the receipt of remittances significantly enhance household welfare, while larger household sizes and nomadic residency are associated with lower per capita expenditure. Diagnostic tests confirmed the model's structural stability and identified heteroskedasticity, which was addressed using robust HC3 standard errors. The findings provide empirical evidence to inform poverty reduction strategies and social protection policies in Somalia.