This paper aims to investigate the role of macroeconomic policy variables in influencing the flow of migrant’s remittances into Sudan economy over the period 1970-2008. To achieve this aim, the study used the Autoregressive Distributed lag (ARDL) to cointegration method, Impulse response Functions (IRSs) and Variance Decomposion (VDC) techmiques. The empirical analysis indicates that macroeconomic variables plays important role in encourageing the flow of remittances into Sudan. The results of the study indicate that the inflation rate and black market premium have a negative and significant effect on remittances in both short and long-run. The home income variable is found to discourage the remittances, supporting the altrusitic motvation in transfering money by migrants. Morover, the study finds that the trade openness and foreign income show positive effects on remittances. Based on this findings, the paper ends with useful policy impilications which suggested that the improvement of macroeconomic environment is a necessary condition for facilitating the transfer of remittances through the official channels and thus, moblise the flow of remittances in a mannar helping to achieve development goals.
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