Optimum Government Size and Economic Growth in Sudan : Using ARDL approach

Policies related to the level of government spending are considered one of the most important economic issues, and aspects that drew particular attention of its impact on economic growth. This paper aims to determine the size of the government of Sudan, which is reflecting positively on the optimal allocation of the resources and the level of public spending that maximizes economic growth. In addition to testing whether there is a long-run relationship between the size of the government and economic growth in Sudan? The findings show that the relationship between government size and economic growth in Sudan is nonlinear (Armey) curve, the ARDL model shows that there is a short and long-run relationship between the size of the government and economic growth in Sudan. The optimal size of the Sudanese government, based on the share of public spending, should not exceed 11.17% of GDP, there is co-integration between economic growth and public spending, and the speed of adjustment toward long run equilibrium is 61%