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Impact of Gulf Cooperation Countries’ Foreign Direct Investment on Sudan’s Agricultural Exports

Author

Listed:
  • Mohamad Alnafissa

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Mohammed Abdeen

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Kamaleldin Bashir

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Yosef Alamri

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Fuad Alagsam

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Abdulaziz Al-Duwais

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

Abstract

Agricultural foreign direct investment (AFDI) contributes to the long-term growth of developing countries. Sudan has rich agricultural resources with great potential for AFDI. However, so far, Sudan has not exploited this potential to attract investors from other countries, having less of a competitive advantage in agricultural production owing to local and international problems. In this study, we examined the effects of foreign investments of Gulf Cooperation Council (GCC) countries on agricultural exports in Sudan, in addition to other economic factors during 1990–2016 using the two-stage least squares (2SLS) model. The results showed that the investments of GCC countries in Sudan’s agricultural sector boosted agricultural exports. The exchange rate was found to be a key determinant factor of GCC countries deciding to invest in Sudan. We recommend that the Central Bank of Sudan encourage policies to stabilize the exchange rate to attract more agricultural investment from GCC countries.

Suggested Citation

  • Mohamad Alnafissa & Mohammed Abdeen & Kamaleldin Bashir & Yosef Alamri & Fuad Alagsam & Abdulaziz Al-Duwais, 2022. "Impact of Gulf Cooperation Countries’ Foreign Direct Investment on Sudan’s Agricultural Exports," Sustainability, MDPI, vol. 14(6), pages 1-8, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3542-:d:773398
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    2. Khezri, Mohsen & Heshmati, Almas & Ghazal, Reza & Khodaei, Mehdi, 2022. "Non-resource revenues and the resource curse in different institutional structures: The DIGNAR-MTFF model," Resources Policy, Elsevier, vol. 79(C).

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