Khartoum University Journal of
Management Studies

OFFICIAL PUBLICATION OF THE SCHOOL OF MANAGEMENT STUDIES, UNIVERSITY OF KHARTOUM
  • Abbreviation: Khartoum Univ. J. Manage. Stud.
  • Language: English
  • ISSN: 1585-8069
  • DOI: 10.5897/KUJMS
  • Start Year: 1994
  • Published Articles: 35

Determinants of foreign direct investment flows into Sudan

Ebaidalla Mahjoub Ebaidalla
  • Ebaidalla Mahjoub Ebaidalla
  • Department of Economics, University of Kassala, Sudan
  • Google Scholar


  •  Received: 01 May 2013
  •  Accepted: 01 June 2013
  •  Published: 30 June 2013

Abstract

This paper aims at investigating the short and long run determinants of Foreign Direct Investment (FDI) flow into Sudan, using cointegration and Vector Error Correction Model (VECM). The long-run analysis indicates that FDI flows are positively influenced by market size, trade openness, human capital and infrastructure in attracting FDI. Unlike the long-runs results, the analysis of short-run reveals that FDI flows are negatively influenced by exchange rate and inflation. The results of short-run analysis also show that oil was an important encouraged the substantial flow of FDI in the last decade. Moreover, the error term coefficient is found to be negative and significant, supporting the long-run analysis. Based on these findings, the paper concludes with some policy recommendations regarding the factors that facilitating the flow of FDI into Sudan

 

Keywords: FDI, FDI determinants, Cointegration, VECM, Sudan, JEL classification:F2, F23, C13.