Page 513 - 2016 - Vol. 40

African Stud. Rev. Vol. ( 40 ) ( 2016 ) : 25 - 74

Determinants of Economic Activity in Sudan:
An Empirical Investigation (1992-2012)

By

Dr. Kamal Mohammed Essa(*)
Abstract

Economic activity is one the macroeconomic indicators that
can be used to measure economic situation. This research examined
from an empirical point of view the determinants of economic
Activity in Sudan (Government Expenditure, Export and Exchange
Rate). The importance of this research stems from the vital role
that could be played by these determinants in the economic
performance. The analysis covered the period (1992-2012), where
the data are obtained from the official sources, namely the Central
Bank of Sudan and the Central Bureau of Statistics. Ordinary least
squares (OLS) method was applied. The results revealed that Export
and Exchange Rate policy show more potency and effectiveness
than government expenditure on economic activity. The research
recommends that the decision- makers should encourage export
through the adoption exports promotion strategies, which require
diversification of production and markets as well as improving
economic infrastructure, and the policy that lead to stabilize
exchange rate is needed. Furthermore, a rational government
spending that raises the rate of economic growth should be adopted.

(*) Ph. D. Candidate, Institute of African Research and Studies, Cairo University. -

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