Foreign Direct Investment , Openness and Economic Growth :

This paper examines the relationship between foreign direct investment, openness and economic growth in Sudan during the period 1972-2011 using Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The study used autoregressive distributed lag (ARDL) approach to cointegration analysis proposed by Pesaran and Shin (1999) to estimate the short-run and long-run relationship between the variables. The co integration analysis suggests that there is a long run equilibrium relationship among the variables by considering relationship between gross domestic product (GDP), foreign direct investment (FDI) and openness of the trade policy regime. The results indicate that foreign direct investments exert an independent influence on economic growth and there is unidirectional causality running from foreign direct investment to economic growth. The government and policy makers should employ strategies to attract foreign investment so as to promote economic growth. [Ahmed Mohammed Khater Arabi. Foreign Direct Investment, Openness and Economic Growth: Empirical Evidence from Sudan (1972-2011). J Am Sci 2014;10(9):30-35]. (ISSN: 1545-1003). http://www.jofamericanscience.org. 4