Page 541 - 2016 - Vol. 40

Using ordinary least squares technique and annual
time series data covering the period (1985-2005), Dafa Alla
(2007) examined the determinant of real GDP in Sudan. He
tested the hypothesis that the real GDP responds positively
and significantly to changes in real government expenditure
and real investment. On the other hand, the coefficient of
real exports is statistically insignificant. Furthermore, the
results revealed that real GDP responds positively and
significantly to change in Jagged variables, namely real
government expenditure and real investment, as well as
lagged real exports. This suggests that developmental
efforts in Sudan should focus more on increasing
government expenditure, particularly for infrastructure, as
well as focusing on both private and public investment and
export promotion.

The most prominent features of the transformations
in Sudan economic system during the past twenty years,
was the transition to the market economy system, and
stabilization of Islamic banking approach in Sudanese
banks both in terms of accept deposits or grant funding, as
well as the use of financial instruments that are compatible
with Islamic law with what regard to the cash management
in macro-economy. Also the adoption of the dual banking

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