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Assessment of the impacts of oil: Opportunities and challenges for economic development in Sudan

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  • Nour, Samia Satti Osman Mohamed

    (Faculty of Economic and Social Studies, Khartoum University, and UNU-MERIT)

Abstract

This paper provides an assessment of the impacts of oil and discusses the opportunities and challenges for enhancing economic development in Sudan. One advantage of our analysis in this paper is that we provide a more comprehensive analysis using the most recent secondary data to discuss the positive and negative impacts of oil for enhancing economic development in Sudan. We explain that the various positive impacts of oil and the opportunities for enhancing development in Sudan's economy include the impacts of oil in satisfying domestic consumption and achievement of self sufficiency, increasing government and public revenues, rapid and impressive economic growth as measured by the growth in the GDP and its composition and structure, increasing foreign direct investment (FDI) and increasing the volume of foreign trade as measured by the volume and structure of exports. We find that while oil has recently contributed to the improvement of economic performance in the country, the recent heavy dependence on it, may lead to negative impacts and serious challenges for the Sudan since oil is an exhaustible resource and because of the instability of oil prices in the international market the revenue from oil is uncertain and volatile and may lead to instability of economic growth. Moreover, the increasing dependence on oil leads to increasing debate for and against the incidence of the Dutch Disease in Sudan economy, the lack of diversification and the challenges related to potential north-south conflict and division of the country.

Suggested Citation

  • Nour, Samia Satti Osman Mohamed, 2011. "Assessment of the impacts of oil: Opportunities and challenges for economic development in Sudan," MERIT Working Papers 2011-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2011006
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    File URL: https://www.merit.unu.edu/publications/wppdf/2011/wp2011-006.pdf
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    References listed on IDEAS

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    1. International Monetary Fund, 2008. "Sudan: First Review of Performance Under the 2007-08 Staff-Monitored Program," IMF Staff Country Reports 2008/174, International Monetary Fund.
    2. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
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    Cited by:

    1. Yassin Elshain Yahia & Liu Haiyun & Muhammad Asif Khan & Sayyed Sadaqat Hussain Shah & Mollah Aminul Islam, 2018. "The Impact of Foreign Direct Investment on Domestic Investment: Evidence from Sudan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 1-10.
    2. Aye, Goodness C. & Dadam, Vincent & Gupta, Rangan & Mamba, Bonginkosi, 2014. "Oil price uncertainty and manufacturing production," Energy Economics, Elsevier, vol. 43(C), pages 41-47.
    3. Sivashankar, Pathmanathan & Weerahewa, Jeevika & Pushpakumara, Gamini & Galagedara, Lakshman, 2016. "An estimation of the willingness to pay for biodiesel: a pilot study of diesel consumers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(1), pages 1-19, April.
    4. Nour, Samia, 2020. "Overview of the Sudan Uprising," MERIT Working Papers 2020-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Khalid A. Alkhathlan, 2013. "Contribution of oil in economic growth of Saudi Arabia," Applied Economics Letters, Taylor & Francis Journals, vol. 20(4), pages 343-348, March.
    6. Elsiddig Rahma & Noel Perera & Kian Tan, 2016. "Impact of Oil Price Shocks on Sudan s Government Budget," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 243-248.
    7. Bryane Michael, 2019. "The Case for an IGAD Development Bank," Journal of Development Policy and Practice, , vol. 4(1), pages 35-65, January.

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    More about this item

    Keywords

    oil economy; oil impacts; economic development; Sudan;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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