Impacts of Exemption from Customs on Sudan’s GDP During the Period of (1960-2008)

Abstract

This research aimed at studying the direct and indirect impacts of customs exemption on Sudan’s GDP over the period (1996-2009). To achieve this, information compiled from different sources were analyses by applying error correction model and Granger – causality test to the main variables of relevance. Moreover, cointegration tests were also applied to test the integration between the studied series of these factors. The analysis showed that the customs exemptions in Sudan have positive impact on GDP, investment, import, and export. And the Granger-casualty shows that Exemption of customs Granger-cause customs revenue, investment and import, but it does not Granger-cause export, inflation and GDP in short-run. Where the ECM shows in the short-run the exemption and customs revenues and GDP are adjusted by 2.7%, 12% and 23.7% respectively. The Engle-Granger model shows the impact of customs exemption on GDP by positive more than its negative effect on custom revenues in the short-run, but in the long-run the vise versa results