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280625

Factors Affecting the Growth of the Egyptian Economy العوامل المؤثرة على نمو الاقتصاد المصري

Article

Last updated: 05 Jan 2025

Subjects

-

Tags

Agricultural economics

Abstract

This paper aimed to study the most important factors affecting the growth of the Egyptian economy, represented in its quantitative form by GDP, by studying each of: Development of the current situation of GDP and each of the following economic indicators as the most important quantitative factors affecting GDP, exports and imports College, foreign investment, development aid, and external debt in Egypt during the period (2000-2020). Estimating the standard (VAR) model to measure the impact of each of total exports and imports, foreign investment, development aid, and external debt on the growth of the Egyptian economy. Forecasting the economic indicators under study to know the future expectations of Egyptian economic growth.
The research reached many results, the most important of which are: an increase in the gross domestic product, total exports, total imports, development aid, and external debt at a growth rate of about 8.1%, 5.4%, 7.3%, 6.7%, and 6.4%, respectively, during the study period. The results also showed that the most important factors affecting the Egyptian economic growth through the multiple regression model and using the first differences to identify the factors, which are the total value of Egyptian total exports, the total value of Egyptian total imports, and foreign investment. Where it became clear through the results of the model that the Egyptian gross domestic product is positively affected by the increase in total Egyptian exports and is negatively affected by the increase in Egyptian total imports, as well as by foreign direct investment during the study period and that these variables together explain about 87.5% of the changes affecting the gross domestic product. It also found a significant indication of a one-way causal relationship extending from each of total exports, total imports, and foreign investment to the gross domestic product (Egyptian economic growth). It was also clear from the forecast results that there are negative effects of the economic indicators under study on the gross domestic product, which is represented in the increase in the value of imports over the value of exports, which constitutes a deficit in the Egyptian trade balance of about $6.85 billion, which constitutes a burden on the Egyptian trade balance. It is also evident that the value of development aid has decreased, which negatively affects the Egyptian economic growth, as well as the increase in the value of the public debt by 60.4%, which is a large percentage that greatly impedes the processes of economic growth.
The foregoing may be attributed to the negative effects resulting from the repercussions of the novel coronavirus pandemic, which lasted from 2020 until approximately the beginning of 2021. Which resulted in many obstacles in economic and social development.

DOI

10.21608/jalexu.2023.183654.1107

Keywords

Egyptian economic growth, standard VAR model, economic forecasting, Cov. 19 pandemic

Authors

First Name

Doaa

Last Name

Mahmoud

MiddleName

H.I

Affiliation

Associate Professor, Economic and Agribusiness Department, Faculty of Agriculture, Alexandria University

Email

doaa.mahmoud@alexu.edu.eg

City

Alexandria

Orcid

0000-0001-6651-1266

Volume

28

Article Issue

1

Related Issue

38666

Issue Date

2023-03-01

Receive Date

2022-12-27

Publish Date

2023-03-31

Page Start

15

Page End

23

Print ISSN

1110-5585

Online ISSN

2785-9525

Link

https://jalexu.journals.ekb.eg/article_280625.html

Detail API

https://jalexu.journals.ekb.eg/service?article_code=280625

Order

2

Type

Research papers

Type Code

1,789

Publication Type

Journal

Publication Title

Journal of the Advances in Agricultural Researches

Publication Link

https://jalexu.journals.ekb.eg/

MainTitle

Factors Affecting the Growth of the Egyptian Economy العوامل المؤثرة على نمو الاقتصاد المصري

Details

Type

Article

Created At

23 Jan 2023