| dc.description.abstract | This thesis attempts to examine the effects of the trade
and payments regime prevalent in the Sudan between 1966 - 1976 on her
domestic manufacturing industry. For this purpose, we employ two widely
used methods, namely, the Effective Rate of Protection (ERP), and
the Domestic Resource Cost (MC). Literature on both methods is reviewed
and uses, implications, and empirical findings are discussed.
A brief description of the structure of Sudanese economy
is provided and the objectives and components of commercial policy
are set out. Particular emphasis is laid on the effects of these policies
on exports and imports. Export composition and performance are
analysed and it is shown that the policy pursued harboured a strong
anti-export bias which adversly affected export performance. As regards
imports, considerable attention is paid to the. description and
evaluation of the complex system operated. It is suggested that while
the system might have helped to reduce immediate pressure on the balance
of payments, this achievement was not without cost.
Before effective rates of protection are computed and
their results evaluated, industrial policy, objectives and instruments
are spelt out and assessed. Computed ERPs are then shown to have wide
inter-sectoral and inter-industrial variations. It is suggested that
this might indicate a lack of consistent criteria in tariff setting.
Furthermore, both nominal and effective rates of protection are shown
to be associated with resource shifts through time. The results, however,
did not lend support to the claim (of ERP theory) that ERPs are
better predictors of resource movements than nominal rates.
Finally, DRCs are estimated. Results reveal that they
vary between industries and between firms, in the same industry. Hypotheses
to help explain such variations are then formulated and tested.
It is suggested that although inefficiency in factor use and underutilization
of capacity go far in explaining observed variations, other
factors e. g. poor infrastructural services and foreign exchange allocation
methods may also be important. | en_US |
