A Note on the Problems Facing Macro-econometric Model Building in Developing Economies: The Case of Sudan
Ahmed Elsheikh M.Ahmed, Leena Ahmed Elsheikh

Abstract
This paper sets out to address the problems facing macroeconomic model building in developing economies Intricacies and deficiencies of datasets for most macro-variables result from an amalgam of debilitating factors It reflects a variety of related problems. As a consequence, it is rather difficult to single out specific problem that has a single solution .The wide gap between econometric theory and econometric practice should be a cause for alarm in developing countries. Hence this paper underlines the urgency of a form of collaboration and coordination between the various bodies making up the National Statistical System (NSS). Both national and international credible support and effective assistance is urgently needed. In the absence of such support, one has a less sanguine view of the capacity of data producers, in particular, to rid the difficulties involved. While huge efforts are exerted to specify and estimate macroeconomic models for developing economies, their usefulness is quite limited attributable to data deficiencies - data that lack objectivity and comparability. For adequate modeling, the paper concludes that model builders should critically probe data sets in order to correct their deficiencies before their ultimate use.

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