The Effects of Social Spending on Growth in Sudan

Hisham Mohamed Hassan Ali, Amin Mohamed Ali Haleeb

Abstract: This paper have investigated the effects of social spending benefits on economic growth for the Sudan. The paper tries to answer the following questions i) whether economic growth and social spending are cointegrated, ii ( whether social spending Granger causes economic and a VAR was constructed. The results show that in the short run social spending lead to increase the GDP per capita output equal on average 0.5 % and an increase in primary education enrolment by 1 % is associated with an increase in the growth of 0.8 %, in contrast the health capital have negative and insignificant impacts

Keywords: Social Spending, Growth, Cointegration, causality, Sudan