Time Series Analysis to Evaluate the Impact of Foreign Direct Investment on Economic Growth in Sudan

Abstract

The study aimed to evaluate how foreign direct investment (FDI) impacts economic growth in Sudan. A standard model was designed to analyze the relationship between the study variables from 2000 to 2022. The primary problem of the study is whether Sudan can offer the required standards, incentives, and privileges to attract foreign investors. In the theoretical aspect, the study utilized a descriptive analytical approach, but in the practical aspect, it employed a statistical method grounded on econometric tools in the analysis, applying the Autoregressive Distributed Lag (ARDL) model. The relevant data were acquired from the Sudan Central Bureau of Statistics for the study period. The study hypothesized that there is a statistically significant correlation between FDI and economic growth in Sudan. The findings determined a statistically significant long-term association between FDI and economic growth. The study recommended enhancement of an environment favorable to both foreign and domestic investment.