Appraisal of Trade Potency on Economic Growth in Sudan: New Empirical and Policy Analysis

Sayef Bakari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between domestic investment, exports, imports, and economic growth in Sudan. In order to achieve this purpose, annual data were collected from the reports of World Bank for the periods between 1976 and 2015, was tested by using Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) stationary test, co integration analysis of Vector Error Correction Model and the Granger-Causality tests. According to the result of the analysis, unit root tests show that economic growth, domestic investment, exports and imports series become stationary when first difference is considered. Also, it was determined by using co integration analysis that there is relationship between the four variables in Sudan. Also, and according to the Vector Error Correction Model, there is no relationship between variables in the long run term. On the other hand, and according to the Granger-Causality tests, we defined that in the short run term, only economic growth cause domestic investment. These results provide evidence that Reforms and measures in economic strategies are still insufficient to make trade and domestic investment able to boost the Sudan's economy.

Keywords: Exports; Imports; Economic Growth; Sudan; Cointegration; Vector Error Correction Model and Causality (search for similar items in EconPapers)
JEL-codes: F1 F11 F13 F14 (search for similar items in EconPapers)
Date: 2017-06-10
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

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Journal Article: Appraisal of Trade Potency on Economic Growth in Sudan: New Empirical and Policy Analysis (2017)
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