Economics of non-oil exports of Sudan

The purpose of this paper was to estimate the respective roles of oil and non-oil exports to total Sudan exports during 1970-2009. The specific objective aimed to estimate the respective role of agricultural exports on the agricultural Gross Domestic Product (GDP) and the main factors affecting the exports of selected agricultural commodities. The study ultilized secondary data covering the period 1970-2009. The data analyzed using descriptive analysis and multiple regression analysis. The main finding of study showed that the contribution of agricultural exports to total exports dropped from 100% during 1990-1994 to 8.5% during 2005-2009.The study also indicated that the increased revenues of oil exports caused a positive trade balance in certain years. The main agricultural exports were sesame 32.3% of total agricultural value, sheep 21.8%, cotton 17.7% and gum Arabic 14.8%. As an example, the regression results indicated a negative relationship between the FOB prices and quantities exported in the case of sesame export model. It also showed the existence of a positive relationship between production and exports of sesame. In case of gum Arabic model the results indicated positive relationship between exports of gum Arabic and production, stock, and negative relationship with FOB price, taxes and GAC oligopoly. The study recommended diversification and increasing non-oil exports in order to reduce the impact of the deficit in trade balance and encouraged local processing of agro-based raw materials to enhance the exports and take advantage of value added.