The Dynamics of Agricultural Development in Sudan: Government and Bank Financing in Focus (1990-2020)

Abstract

This research delves into the multifaceted challenges facing Sudan's agricultural sector, employing a dual approach of analytical data examination and an extensive literature survey. The study spans a three-decade period, from 1990 to 2020, to comprehensively assess the dynamics shaping the sector. Analytical data exploration revealed challenges in government and bank financing, including suboptimal allocation, limited financial commitment, and a disparity in focus. The literature survey further substantiated these challenges, emphasizing issues such as financial scarcity, weak infrastructure, and policy ineffectuality. To elucidate the long-term dynamics, the study employed the Autoregressive Distributed Lag (ARDL) model, establishing a robust connection between government development expenditure, bank financing, and agricultural output. Results highlighted the significant positive impact of both government spending and bank financing on agricultural output over an extended period, emphasizing their pivotal roles in sustaining sectoral development. The short-term analysis uncovered a self-correction mechanism within the economy, indicating its resilience to immediate disruptions. This insight underscores the necessity of implementing enduring policies that consider the time frame required for their full effects to materialize. Policy implications stress the importance of aligning government expenditures with the sector's long-term requirements and enhancing the accessibility of bank financing to drive short-term agricultural expansion.