The use of Factor Analysis to Determine the Important Factors that Affecting the Inflation rates in Sudan, (1970-2014)

Elmogiera Fadlallh Elsayed Elawad,

Assistance Professor, Qatar,

University of Qatar,

social and economic survey research institute.

Adel Ali Ahmed Mohamed,

Associate Professor, Sudan,

University of Gezira,

Faculty of Economic and Rural Development,

Department of Applied Statistics and Demography.

Aziza Ahmed Seneen,

Lecturer, University of Gezira,

Faculty of Economic and Rural Development,

Department of Applied Statistics and Demography.

CITATION: Elawad, E., F., E., Mohamed, A., A., A., Seneen, A., A. (2016) The use of Factor Analysis to Determine the Important Factors that Affecting the Inflation rates in Sudan, (1970-2014) International journal of Economics and Finance. Vol. 5 (9) PP 1-10

ABSTRACT

Inflation is the rate of change in the price rises during a certain period of time, Economy and be influenced by inflation when prices are high in the case of continuous periods. The research aims to identify the most important variables affecting inflation in Sudan (1970-2014), The researcher has relied on secondary sources of data , where data were obtained from the Central Bank of Sudan from ( 1970-2014),The researcher following the descriptive and analytical approach through the application of one methods of multivariate analysis (factor analysis) on these variables, So as to learn the extent of his contribution to the extraction of these variables in the new few factors contain the greatest influence of variables with a reverse  key dimensions of these variables. It was use of the Statistical Package for the Social Sciences (SPSS) in the processing and analysis of data. It concluded that the results of the research sample was sufficient As indicated in the test value (Kaiser-Meyer-Olkin) (0.638), Also, Bartlett explained that the test correlation relationships between variables search function morally, And also the standard Kaiser detect the presence of workers increase their roots from the correct one, The factors explained 88.179 % of the total variation , so that the shares first factor to 71.176 %, while the shares of second factor to 17.003 %, We also find that the first factor more variables , the highest contribution of imports and exports, followed by the then government spending and foreign investment and financing costs (it was an inverse relationship)and gross domestic product, While more variables contribution in the formation of second factor is the investment and the exchange rate and the general level of prices and the money supply.

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