Economic Aspects of the Transformational Industries (TI) An Evaluation Study of Sudanese (TI) during (2004/2005 up to 2013/2014)

Ayoub Taha Sidahmed Taha

Abstract


This study evaluates the performance of transformational industries (TI) in Sudan during the period (2004/2005 up to 2013/2014). This period represents the terminal point of the Comprehensive National Strategy, the period of the Five-Year plan and the beginning of the second Five-Year Plan of the Quarter-Century Strategy (2007/2008-2031/2032). This period is therefore appropriate for achieving indicators that provide evidence for the economic impact of this industry.

This study aims to discuss the economics of (TI) from various aspects. Accordingly, the study adopts the descriptive analytical method that acknowledges the structure and the strategies related to the (TI), and clarifies TI’s economic role. The descriptive analytical method assesses the impact of (TI) on the GDP, the contribution of the export sector and the deficit in the balance of trade. To support its findings, the study draws comparisons between (TI) performance in Sudan and that in other countries.

The most prominent findings of this study are:

The (TI) contribution to the value added of products is low, with an average share in GDP around 10.5%. In addition, the (TI) average share in exports is about 0.24%, whereas the average share of imports from (TI) products is around 41.35%. This indicates that (TI) is not supporting the balance of trade, which explains the weak competitiveness of Sudanese (TI) relative to other countries in the region. Such findings are in agreement with the International Index of Specialization (IIS) data.

The study confirms that (TI) in Sudan faces, some problems related to TI structure (locality, concentration, and size of industry) and (TI) types. Moreover, the financial and investment policies are focused on small and medium scale industries without the due attention to (TI).

TI therefore failed to achieve the value added of its products or increase employment opportunities. The study also reveals that the infrastructure of (TI) did not consider the detrimental effects of the industry on the environment.

The policies of some productive sectors negatively affected (TI). For instance, the edible oil and textile industries have been adversely affected by the introduction of wheat in place of cotton in the Gezira Scheme. In conclusion, the study made some recommendations to revive the (TI) in Sudan. It is important to improve the quality of (TI) products to gain competitive advantage. Large-scale industries must also be established and agglomerated in such a way that encourages forward, backward and vertical integration. An investment map should be designed consistent with the availability of resources’ of each region. It is necessity that regulations and administrative structures should put in place to improve performance.


Full Text:

PDF


DOI: https://doi.org/10.11114/aef.v3i3.1478

Refbacks

  • There are currently no refbacks.


Paper Submission E-mail: aef@redfame.com

Applied Economics and Finance    ISSN 2332-7294 (Print)   ISSN 2332-7308 (Online)

Copyright © Redfame Publishing Inc.

To make sure that you can receive messages from us, please add the 'redfame.com' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

-------------------------------------------------------------------------------------------------------------------------------------------------------------