Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan

Sudan economy has experienced a prolonged period of internal and external imbalances. Inappropriate policies have caused misallocation of resources and the lowering of productivity and employment. Macroeconomic instability placed further strain on growth by reducing investors' confidence in...

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Main Author:	Hassan, Ahlam Abd Elhadi
Format:	Thesis
Language:	English English
Published:	2003
Subjects:	Sudan - Economic Condition
Online Access:	http://psasir.upm.edu.my/id/eprint/8321/1/FEP_2003_1_IR.pdf
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id	my-upm-ir.8321
record_format	uketd_dc
spelling	my-upm-ir.83212024-01-05T08:24:30Z Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan 2003-04 Hassan, Ahlam Abd Elhadi Sudan economy has experienced a prolonged period of internal and external imbalances. Inappropriate policies have caused misallocation of resources and the lowering of productivity and employment. Macroeconomic instability placed further strain on growth by reducing investors' confidence in the economy. To cope with the situation, Sudan, by the end of fiscal year 1978, has resorted to international borrowing which ushered in the Structural Adjustment Programs (and stabilization): the reform measures required by the International Monetary Fund and the World Bank as a condition for their loans. The Structural Adjustment Program is an economy-wide, all embracing, and comprehensive set of policy reforms aimed at expanding and strengthening the role of the market forces for efficient allocation of resources. The main objective of the study is to examine the effects of the Structural Adjustment Programs on the Sudanese economy. In particular, the study analyzes interactions between structural reform and selected macroeconomic variables including saving, investment and growth. Annual data covering the period 1955 to 1998 was used. A six-equation model with six variables was used in the study. A dummy variable was included as an exogenous variable to capture the effects of a Comprehensive Strategy Structural Program. which was implemented in Sudan. The results of this study indicate that there was a positive correlation between growth, investment, and savings and show the important role of structural reform in determining all three variables. The structural programs in the Sudanese economy had positive effects on saving and investment, but its impact on the growth rate was negative in the short run. The findings tend to confirm the predominant view that sound macroeconomic policies and structural reforms are crucial for saving, investment and growth. To improve the productivity of investment, the Sudanese government should identify and undertake investments that have positive net returns. Increased emphasis on education and the adoption or maintenance of outward oriented policies, for example removal of export taxes, and improvement in investment policies, in all fronts, are needed. These are capable of stimulating investment and spurring sustainable long-term economic growth. Coordination and better targeting of foreign assistance resources on specific projects that can create the conditions for trade and saving, are required; knowing that foreign assistance can be used strategically to foster reforms. Sudan - Economic Condition 2003-04 Thesis http://psasir.upm.edu.my/id/eprint/8321/ http://psasir.upm.edu.my/id/eprint/8321/1/FEP_2003_1_IR.pdf text en public doctoral Universiti Putra Malaysia Sudan - Economic Condition Faculty of Economics and Management Mohayidin, Mohd. Ghazali English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
advisor	Mohayidin, Mohd. Ghazali
topic	Sudan - Economic Condition
spellingShingle	Sudan - Economic Condition Hassan, Ahlam Abd Elhadi Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
description	Sudan economy has experienced a prolonged period of internal and external imbalances. Inappropriate policies have caused misallocation of resources and the lowering of productivity and employment. Macroeconomic instability placed further strain on growth by reducing investors' confidence in the economy. To cope with the situation, Sudan, by the end of fiscal year 1978, has resorted to international borrowing which ushered in the Structural Adjustment Programs (and stabilization): the reform measures required by the International Monetary Fund and the World Bank as a condition for their loans. The Structural Adjustment Program is an economy-wide, all embracing, and comprehensive set of policy reforms aimed at expanding and strengthening the role of the market forces for efficient allocation of resources. The main objective of the study is to examine the effects of the Structural Adjustment Programs on the Sudanese economy. In particular, the study analyzes interactions between structural reform and selected macroeconomic variables including saving, investment and growth. Annual data covering the period 1955 to 1998 was used. A six-equation model with six variables was used in the study. A dummy variable was included as an exogenous variable to capture the effects of a Comprehensive Strategy Structural Program. which was implemented in Sudan. The results of this study indicate that there was a positive correlation between growth, investment, and savings and show the important role of structural reform in determining all three variables. The structural programs in the Sudanese economy had positive effects on saving and investment, but its impact on the growth rate was negative in the short run. The findings tend to confirm the predominant view that sound macroeconomic policies and structural reforms are crucial for saving, investment and growth. To improve the productivity of investment, the Sudanese government should identify and undertake investments that have positive net returns. Increased emphasis on education and the adoption or maintenance of outward oriented policies, for example removal of export taxes, and improvement in investment policies, in all fronts, are needed. These are capable of stimulating investment and spurring sustainable long-term economic growth. Coordination and better targeting of foreign assistance resources on specific projects that can create the conditions for trade and saving, are required; knowing that foreign assistance can be used strategically to foster reforms.
format	Thesis
qualification_level	Doctorate
author	Hassan, Ahlam Abd Elhadi
author_facet	Hassan, Ahlam Abd Elhadi
author_sort	Hassan, Ahlam Abd Elhadi
title	Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
title_short	Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
title_full	Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
title_fullStr	Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
title_full_unstemmed	Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan
title_sort	effects of structural adjustment programs on saving, investment and growth: a case study of sudan
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Economics and Management
publishDate	2003
url	http://psasir.upm.edu.my/id/eprint/8321/1/FEP_2003_1_IR.pdf
_version_	1794018740553121792

Effects of Structural Adjustment Programs on Saving, Investment and Growth: A Case Study of Sudan

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