Inflation and Economic Growth in the Sudan: An Empirical Analysis

Objectives: The study's objective is to investigate the relationship between inflation and economic growth in Sudan from 1982 to 2020. Methods: To achieve this objective, the study co-integration analysis within an auto-regressive distributed lag (ARDL) methodology. The bound test revealed that the model's variables are co-integrated in the long term, with the significance of the error correction term further confirming this long-term relationship, while the ERC should focus on short-term dynamics. Results: The results indicate that the growth rate of real GDP per capita is positively and significantly co-integrated with the growth rate of capital per capita, whereas it is negatively and significantly co-integrated with the inflation rate. Conclusions: The study recommends that policymakers consider this inverse relationship when formulating economic policies.