Allocative
Efficiency of Capital Investment: The Case of the Sudanese Public and Private
Manufacturing Sectors
Fareed Mohmed Ahmed Hassan
Abstract: The paper sets out to examine the extent of resource misallocation in both public and private manufacturing sectors in the Sudan. The paper provides a theoretical model of optimal resource allocation to be used for the empirical analysis of the data. The results suggest that the share of the private sector community welfare loss is greater than the public that of the public sector. In other words, the public sector is economically more efficient relative to the private sector.