Migrants' Remittances, Capital Flight and Macro-Economic Imbalance in Sudan's Hidden Economy

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Periodical article

Title:	Migrants' Remittances, Capital Flight and Macro-Economic Imbalance in Sudan's Hidden Economy
Author:	Brown, Richard P.C.
Year:	1992
Periodical:	Journal of African Economies
Volume:	1
Issue:	1
Period:	March
Pages:	86-108
Language:	English
Geographic term:	Sudan
Subjects:	migrants capital movements economic policy Economics and Trade
External link:	https://jae.oxfordjournals.org/content/1/1/86.full.pdf
Abstract:	Migration to the Gulf, the spread of the parallel economy, and capital flight have become major features of Sudan's economy. This paper examines these processes, analyses the relationship between them, and estimates their quantitative significance over the period 1978-1987, based on survey data on Sudanese migrants abroad, and using a simple macroeconomic accounting framework. It finds that the revised macroeconomic aggregates incorporating the unrecorded international financial flows and domestic transactions associated with these 'hidden' adjustment processes give a completely different picture of Sudan's economic imbalances and the nature of the microeconomic processes underlying these than conventional analyses. The efficacy of orthodox IMF and World Bank analysis and policy prescriptions are then questioned in the light of this alternative perspective. Bibliogr., notes, ref.