Financial Development and Economic Growth in Sudan : Empirical Assessment Based on an Application of the Autoregressive Distributed Lag (ARDL) Model

This study investigates the effect of financial development on economic performance in Sudan over the period (1970- 2007) by using the Auto-regressive Distributed Lag (ARDL) approach to co-integration. The main empirical findings indicate a weak relationship between financial development and economic growth in Sudan. These findings may be attributed to the inefficient allocation of resources by banks, along with the absence of an appropriate investment climate required to foster significant private investment and promote growth in the long run, and to the poor quality of credit disbursal of the banking sector in Sudan