Effect of Oil Revenue and the Sudan Economy: Econometric Model for Services Sector GDP

This paper investigates the impact of oil revenue and the service GDP of Sudan for the period 2000 to 2012. To achieve this goal, secondary data were collected and analyzed using regression methods. The results reveal a causal relationship between oil revenue (independent variable) and service GDP (dependent variables). Regression analysis result suggests that oil revenue affects the service GDP positively. Oil revenue is estimated to have contributed to 78.8 percent of variation in GDP between 2000 and 2012. Furthermore, a unit change in oil revenue will cause a .0246 percent change in service GDP.