Foreign direct investment and economic growth in Sudan 1999 to 2011
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Date
2014-07
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study examined the relationship between foreign direct investment (FDI) and economic growth in Sudan from 1999 to 2011. Its objectives are mainly to i) determine the level foreign direct investment in Sudan from 1999 to 2011, ii) establish the level of economic growth in Sudan from 1999 to 2011, iii) find out the relationship between foreign direct investment (FDI) and economic growth in Sudan from 1999 to 2011. The study findings revealed that the level of foreign direct investment in Sudan was found to be decreasing over time given that the coefficient on FDI was negative with Beta as -0.0432418; this decrease is attributed to the political instabilities which made it difficult for foreigners to invest in the country. The results also indicate a decreasing pattern in the level of economic growth in Sudan over time as the gradient of the linear regression model was negative with Beta -0. 2203297. It is noted that there is a positively relationship between FDI and real GDP growth rate (r-value = 0.5809), however the null hypothesis was rejected leading to a conclusion that there is no significant relationship between FDI and economic growth as evidenced by (P value = 0.037 < sig 0.05 as well as F = 5.60 > F critical 0.05, 1, 11 = 4.84 and the t = 2.37 > t critical 0.05, 11= 1.796). The study recommends future research on the effect of private investment on economic growth in Sudan, and on the effect of public investment on economic growth in Sudan.
Description
A dissertation submitted to the college of economics and management sciences in partial fulfillment of the
requirements for the award of Bachelors Degree in Economics of Kampala International University
Keywords
Foreign direct investment, Economic growth, Sudan 1999 to 2011