| Foreign direct investment has become more significant for developing countries, because it is a substantial source of external funding.Sudan, as such a developing country,has sought to attract foreign investment by opening the door for investment in various productive sectors.However,the industry sector including oil,has taken on a significant investment since 2000.The Sudanese economy, during the period from 2000 to 2010, suffered from an unequal distribution of FDI among the productive sectors and the states of country, where the inflow of the foreign investment was limited mainly in the industrial sector.The main purpose of this study is to examine the inflow of foreign direct investment to the productive sectors during the period from 2000 to 2010.Moreover, the study attempts to investigate the impact of FDI in the industry sector.Undoubtedly, the investment legislation is one of the main determinants of the investment climate.This act promotes the investment in industry in order to develop the industrial sector.In 1999 new legislation set to avoid the shortcomings in devious laws and, this one also amended in 2000.But Sudan’s investment climate could not be described as an attractive because of unstable economic and political condition.The study is based on many Sudanese primary data resource,and using the Sudanese industrial aggregated panel data sample of 10 manufacturing industries.The study used an econometric model in order to evaluate the role of FDI on the development of the industrial sector in Sudan, we present econometric modeling share of manufacturing industries output,depending on the value of FDI capital, the value of domestic capital, the number of labor,the material input,the value of technology.The analysis is done with a regression model of Cobb-Douglas function,based on the data from the sample,and we build econometric model, estimate and test model parameters which analyzed by statistical package for social sciences (SPSS).The most important result of this study indicated that foreign direct investment has a positive effect on the development of the industrial sector,and we also observed that FDI capital has strongest relationship with manufacturing industries output,compared to the rest of independent variables,that means the FDI capital has affected on manufacturing industries output by 37%,the domestic capital has affected on manufacturing industries output by 26.8%,the labor has affected on manufacturing industries output by 7.9%,the marital input has affected on manufacturing industries output by 10%,the R&D has affected on manufacturing industries output by 9.8%, and technology has affected on manufacturing industries output by 8.5%.The government should do its best to Haitian security and political stability all over the Sudan in order to attract more foreign investments. |
