Modelling Principle Components Analysis of the Sudanese Macroeconomic Variables

29 Pages Posted: 29 Apr 2012

See all articles by Issam A.W. Mohamed

Issam A.W. Mohamed

Al-Neelain University - Department of Economics

Hamza Hamza

affiliation not provided to SSRN

Date Written: April 27, 2012

Abstract

The current paper experiments with the conception and analytical model of principle components. The analysis utilizes data of Sudan to test the model fitness and data suitability. All the country's economic sectors are used in the analysis which also integrates high, medium and low income strata in the model. Obtained results reveal the model viability whereas coefficients of determination R2 were high, Variance Frequency inflation (VIF) results were all below the value of 10 and beta coefficients were at 5 and 1% significance levels. A specific indicator was improvised to estimate Consumer Prices Index (CPI) that was used in the estimations. A prime result is that even with the dominance of the oil industry in the county's economy, the agricultural sector still played a main affecting economic sector. Thus its continuous negligence can perceivably result in economic setback.

Note: Downloadable document is in Sudanese.

Keywords: Sudan, Economic Perfomance, Macroeconomic Variables, Principle components Analysis, Social Status, Income Strata, Economic Sectors Output

JEL Classification: A00, A10, A11, A12, A13, A14, A19, B00, B40, B41, B49, D3, D30, D31, D32, D33, D39, E00, E4, E10, E4

Suggested Citation

Mohamed, Issam A.W. and Hamza, Hamza, Modelling Principle Components Analysis of the Sudanese Macroeconomic Variables (April 27, 2012). Available at SSRN: https://ssrn.com/abstract=2047112 or http://dx.doi.org/10.2139/ssrn.2047112

Issam A.W. Mohamed (Contact Author)

Al-Neelain University - Department of Economics ( email )

P.O. Box 12910-11111
Khartoum, Khartoum 11111
Sudan
249122548254 (Phone)

HOME PAGE: http://works.bepress.com/issamawmohamed/

Hamza Hamza

affiliation not provided to SSRN ( email )

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