Template-Type: ReDIF-Article 1.0
Author-Name: Amin, Yousif Saeed Ahmed
Author-Name-First: Yousif Saeed Ahmed
Author-Name-Last: Amin
Author-Email: ysahmed@ju.edu.sa
Author-Workplace-Name: Department of Business Administration, College of Business, Jouf University, Saudi Arabia
Author-Name: Ahmed, Suha Seifeldin Noureldaim
Author-Name-First: Suha Seifeldin Noureldaim
Author-Name-Last: Ahmed
Author-Email: ssahmed@ju.edu.sa
Author-Workplace-Name: Department of Business Administration, Applied College, Jouf University, Saudi Arabia,
Author-Name: Mohamed, Ali Mohamed Ali
Author-Name-First: Ali Mohamed Ali
Author-Name-Last: Mohamed
Author-Email: alimohammedacc@gmail.com
Author-Workplace-Name: Department of Accounting, Faculty of Commerce, Al Neelain University, Sudan,
Author-Name: Salih Omer Mohamed, Musa
Author-Name-First: Musa
Author-Name-Last: Salih Omer Mohamed
Author-Email: msomohamed@ju.edu.sa
Author-Workplace-Name: Department of Business Administration, College of Business, Jouf University, Saudi Arabia; & Department of Business Administration, Faculty of Economics and Commercial Studies, Nyala University, Sudan,
Author-Name: Mohamed Ibrahim, Mohyee Eldin
Author-Name-First: Mohyee Eldin
Author-Name-Last: Mohamed Ibrahim
Author-Email: mmabrahim@ju.edu.sa
Author-Workplace-Name: Department of Business Administration, College of Business, Jouf University, Saudi Arabia; & Department of Business Administration, Faculty of Economics and Commercial Studies, Nyala University, Sudan,
Title: A Vector Autoregression Analysis of Corruption, Unemployment, and Foreign Direct Investment Outflows in Sudan
Abstract: This study examines the dynamic interrelationships between corruption, unemployment, and foreign direct investment FDI outflows in Sudan using a Vector Autoregression (VAR) model. The objective is to explore how corruption influences both unemployment and FDI outflows, and the combined impact of these variables on Sudan's economic performance. The importance of this research lies in its potential to address economic policy and institutional reforms in Sudan, a country marked by ongoing political instability and economic challenges. The study draws upon existing literature that shows how corruption increases transaction costs, deters foreign investment, and misallocates public resources, thus contributing to higher unemployment. The VAR model is applied using time-series data from 2003 to 2023, focusing on key variables such as the Corruption Perceptions Index (CPI), unemployment rates, and FDI outflows. The results reveal that corruption significantly contributes to FDI outflows and has a long-term negative impact on unemployment. The study emphasises the critical role of governance in shaping both investment behaviour and labour market outcomes. The findings advocate for stronger institutional frameworks and anti-corruption measures to create a more attractive business environment, reduce unemployment, and prevent further capital flight. These insights offer valuable guidance for policymakers and international organisations seeking to promote sustainable economic development in Sudan.
Keywords: Corruption, Unemployment, Foreign Direct Investment Outflows, Vector Autoregression
Journal: International Journal of Economics and Financial Issues
Pages: 25-35
Volume: 15
Issue: 4
Year: 2025
Month: 06
DOI: 10.32479/ijefi.18824
File-URL: https://econjournals.com/index.php/ijefi/article/download/18824/9024
File-Format: application/pdf
Handle: RePEc:eco:journ1:v:15:y:2025:i:4:id:18824