Export, Aid, Remittance and Growth: Evidence from Sudan

The role of export, overseas development aid (ODA) and remittance inflows in relation to economic growth in Sudan is examined in this paper, for the periods of year 1977-2010 using the Johansen Cointegration technique within the augmented Solow-model approach. The results reveal that there is a long run positive relationship between growth, export and remittance, supporting the export-led growth and remittance-led growth hypotheses for Sudan, while aid-growth hypothesis is rejected. Thus, there is a need to manage and boost greater inflow of traditional capital such as aid and the contemporary capital like remittances, besides stimulating greater trade liberalization.