Export, Aid, Remittance and Growth: Evidence from Sudan☆

Abstract The role of export, overseas development aid (ODA) and remittance inflows in relation to economic growth in Sudan is examined in this paper, for the periods of year 1977-2010 using the Johansen Cointegration technique within the augmented Solow-model approach. The results reveal that there is a long run positive relationship between growth, export and remittance, supporting the export-led growth and remittance-led growth hypotheses for Sudan, while aid-growth hypothesis is rejected. Thus, there is a need to manage and boost greater inflow of traditional capital such as aid and the contemporary capital like remittances, besides stimulating greater trade liberalization.