Effects of Direct Foreign Capital on Economic Performance of Developing Countries: Case Study of Sudan (2000-2009)
Issam A.W. Mohamed
Al-Neelain University - Department of Economics
April 3, 2011
International Finance Journal, Vol. 3, No. 71, 2011
The performance of the Sudanese economy is an enigma of continuous failures even with all the potentials of country's resources. The current paper present impacts of direct foreign capital inflows to the Sudanese economy. It is observed that there were ample expansions after oil discovery and extraction in the country. However, signs are that such inflows slowed down after the global economic crisis. There also general failure of the Sudan Central Bank in controlling money supply and foreign currency exchange rates. That is probably due to multiple and unapplied policies or indecisive trends of floating foreign currency exchange rates or controlling them. Good policies were drawn but big questions are raised if they were really implemented. Strong signals are shown that directed foreign capital inflows did not find a welcoming grounds, so they were focused on oil industry or land acquisitions for quick profits of speculations.
Note: Downloadable document is in Arabic.
Number of Pages in PDF File: 27
Keywords: Sudan, Foreign Direct Investment, Structural Adjustment, Strategies
Date posted: April 4, 2011 ; Last revised: April 17, 2011