Review of the Investment Theoretical Applications and Functions in Sudan

Chronically, most of developing countries as exampled in Sudan suffer from the low levels of income in addition to the low savings that are result from the lack of savings channels. Hence, the investment depends on the individuals' abilities on savings, where the investment is considered as major motivating vehicle for economic activity due to its direct correlation with the capital accumulation process that increases the productivity capacity for the national economy and creating job opportunities and achieving economic development. Subsequently, the importance of the investment comes from effective role that can be practiced on the gross national production. This study aimed at explaining the impact of influencing factors on the investment function in the Sudan and then formulating a measuring model for it. It is assumed that there is a causal relationship between investment and influential factors that as: There is a positive relationship between investment and Gross Domestic Products (GDP) and there is a negative relationship between inflation rate and finance cost on investment. Statistical and econometric analysis methods were use best measuring methods in estimating the parameters of the economic relations. The study concluded that: There are significant negative effects of inflation rate on financing cost there are effects of other fixed variables on investment. From these results the study recommends that: The model should be enlarged to include other variables with significant effects on investment such as imports, exports, national income and government expenditure to attain a model that can be used for investment anticipation in the coming years. However, the paper also proposes that the viability of foreign investments in Sudan is very low because of dominating laws, taxation system and administrative procedures. Thus, we deplore unproven assumptions that even allowed foreign investments are subject to internal deals hosted by domestic cartels. That provokes another suggestion, that money flows can be a channel for international laundry