Template-type: ReDIF-Paper 1.0
Author-Name: Nour, Samia Satti Osman Mohamed
Author-Email: samiasatti@yahoo.com
Author-Workplace-Name: Faculty of Economic and Social Studies, 
	 Khartoum University, and UNU-MERIT
Title: Assessment of the impacts of oil: Opportunities and challenges for economic 
	 development in Sudan
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. 
Classification-JEL: O10, O11, Q30, Q32, Q40, Q43
Keywords: oil economy, oil impacts, economic development, Sudan
Series: UNU-MERIT Working Papers
Creation-Date: 2011
Number: 2011-006
File-URL: https://unu-merit.nl/publications/wppdf/2011/wp2011-006.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2011006