Vol.4 , No. 1, Publication Date: Jun. 3, 2017, Page: 1-12
[1] | Tarig E. Mahmoud, Faculty of Natural Resources & Environmental Studies, University of Kordofan, Elobeid, Sudan. |
[2] | Jürgen Pretzsch, Institute of International Forestry and Forest Products, Technische Universität, Dresden, Germany. |
[3] | Hassan I. A. Mofadel, Department of Strategic Planning, Kenana Sugar Company, Khartoum, Sudan. |
[4] | Asmamaw A. Abetew, Department of Natural Resource Management, University of Gondar, Gondar, Ethiopia. |
[5] | Eckhard Auch, Institute of International Forestry and Forest Products, Technische Universität, Dresden, Germany. |
The paper reviewed the policy interventions and measures that have implications on the gum arabic subsector in Sudan since 1899 to date. Profitability, comparative advantage, competitiveness and economic protection regarding gum arabic commodity were also assessed for the last 15 years, including periods before and after liberalization of gum arabic trade. The study depended on secondary data, which were analyzed by descriptive statistic and policy analysis matrix (PAM). The findings confirmed that gum arabic subsector has experienced different levels of policy interventions and measures for more than one century. These interventions have affected the subsector potentialities, resource base and commodity share on the international trade. Despite that the financial profitability of gum arabic commodity has been encouraging for different stakeholders to engage in the sector commercially, particularly after gum arabic trade liberalization. The economic profitability was far higher than the financial one, assuring the severe burden of direct and implicit taxes on the commodity at local markets, especially during the period of the state owned Gum Arabic Company concession. The commodity proved comparative advantage and competitiveness despite the paradoxical policy interventions and measures. The study suggests some recommendations for policy reform of gum arabic subsector in the Sudan.
Keywords
Gum Arabic, Comparative Advantage, Competitiveness, Trade Liberalization, Policy Reform
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