The Role of FDI in Boosting Peacebuilding in Sudan via Promoting Youth Employability

Mohammed Mustafa Ali1 () and Hamed Najaf ()
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Mohammed Mustafa Ali1: University of Khartoum
Hamed Najaf: UN Administrative and Budgetary Expert, Iran Representative

No 1775, Working Papers from Economic Research Forum

Abstract: This study examines the role of foreign direct investment (FDI) in advancing peacebuilding in Sudan via promoting youth employability using the autoregressive distributed lag (ARDL) model and time series data from 1992 to 2023. The findings indicate that both FDI and financial development substantially decrease youth unemployment rates over the long run. Conversely, the findings reveal that elevated inflation rates lead to higher youth unemployment over time. Furthermore, we find that the prevalent rates of youth unemployment considerably hamper peacebuilding efforts both in the short and long run. The primary conclusion is that augmenting FDI inflows can facilitate peacebuilding initiatives within the Sudanese setting by broadening employment prospects for unemployed youth. Accordingly, by harnessing FDI inflows strategically, Sudan can create a more inclusive labor market that not only provides employment opportunities but also fosters stability and peace.

Pages: 34
Date: 2025-05-20, Revised 2025-05-20
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