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Conceptual Framework and Objectives of the Study
Study Title: Trade Policies and Public Sector Expenditure on the Economy of South Sudan
Guiding Theory: Keynesian Economic Theory
Conceptual Framework
Theoretical Lens:
Keynesian Economic Theory argues that government expenditure (fiscal policy) and trade policies (tariffs, subsidies, import–export controls) significantly influence aggregate demand, employment, and economic growth.
Independent Variables (IVs):
- Trade Policies
– Tariff policies (import/export duties, taxes)
– Trade liberalization (openness, restrictions, quotas)
– Exchange rate and trade balance policies
- Public Sector Expenditure
– Infrastructure development
– Social services (health, education, welfare)
– Administrative and security expenditure
Mediating Variable: Aggregate demand (as per Keynesian theory)
Dependent Variable (DV): Economic Performance of South Sudan
– GDP growth
– Employment levels
– Inflation and price stability
– Balance of payments
Conceptual Linkages:
– Trade policies affect the flow of goods and services, influencing revenues and external trade balance.
– Public sector expenditure stimulates aggregate demand, enhances productivity, and drives economic growth.
– Together, they influence overall economic performance in South Sudan.
Diagram (Textual Form):
Trade Policies (Tariffs, Liberalization, Exchange Rates) ──┐
│
├──► Aggregate Demand ──► Economic Performance (GDP, Employment, Stability)
│
Public Sector Expenditure (Infrastructure, Social Services, Admin) ─┘
Objectives of the Study
General Objective:
To examine the effect of trade policies and public sector expenditure on the economic performance of South Sudan within the framework of Keynesian Economic Theory.
Specific Objectives:
- To analyze the relationship between trade policies and economic growth in South Sudan.
- To examine the impact of public sector expenditure on aggregate demand and economic performance.
- To assess how trade policies influence government revenue and fiscal capacity for public spending.
- To determine the combined effect of trade policies and public sector expenditure on key economic indicators such as GDP, employment, and inflation.
- To evaluate the relevance of Keynesian Economic Theory in explaining the interaction between fiscal spending, trade policies, and economic outcomes in South Sudan.
