Challenges to Economic Development in Developing Countries: Case Study of Sudan's Economic Conundrum
Ruby Khan
*
Department of Accounting and Finance, College of Business, Jazan University, Jazan, Saudi Arabia.
Sara Mohamed Kheir Ali Mihaisi
Department of Accounting and Finance, College of Business, Jazan University, Jazan, Saudi Arabia.
*Author to whom correspondence should be addressed.
Abstract
This study explores the challenges to economic development in Sudan, a country endowed with substantial natural resources yet struggling to achieve sustainable growth. By utilizing time series data from 2002 to 2022, the research analyzes the relationship between Sudan’s GDP growth rate and key economic indicators, including inflation rate, unemployment rate, FDI inflows, and net exports. Despite these factors' recognized significance, empirical analysis reveals a weak correlation between these variables and GDP growth, suggesting the presence of other underlying influences. The findings highlight that political instability, ineffective governance, and external economic pressures might be critical barriers to Sudan's development. Strategic recommendations are proposed to address these issues, focusing on improving policy frameworks, enhancing economic diversification, and fostering regional cooperation.
Keywords: Economic Development, Gross Domestic Product (GDP) growth, macroeconomic indicators, political instability, Foreign Direct Investment (FDI)