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349494

An Empirical Investigation of the Exogenous Growth Model in Egypt

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Last updated: 04 Jan 2025

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الأقتصاد

Abstract

This research paper provides a practical examination of the exogenous growth model in Egypt from 1990 to 2022. As the exogenous growth models, including the Harrod-Domar classical model and the Solow-Swan neoclassical models, explain the main determinants of economic growth in developing countries, The focus of this study is to examine the validity of the exogenous growth model in Egypt and analyze its implications for the country's economic performance. In line with the exogenous growth theory, the paper highlights the significance of direct investment, labor force growth, and technological advances in achieving output growth. The concept of conditional convergence is introduced, suggesting that countries with similar economic conditions will reach the same steady state of growth in the long run. The paper explores the idea of absolute convergence, where underdeveloped countries have the potential to grow faster than developed ones by enhancing human capital and benefiting from diminishing returns to capital. The empirical studies discussed in the paper provide insights into the applicability of exogenous growth models in different countries by analyzing economic growth determinants and examining the relationships between variables such as government expenditure, population growth, labor force participation, foreign investments, and technological progress. This study aims to evaluate the exogenous growth model's validity in the Egyptian context by focusing on Egypt. To assess the model's explanatory power, it investigates the relationships between key variables, such as output, capital, labor force, and technological progress. The findings of this study contribute to the understanding of Egypt's economic growth dynamics and provide insights for policymakers.

DOI

10.21608/jces.2024.349494

Keywords

exogenous growth model, Harrod-Domar classical model, Solow-Swan neoclassical models, Economic growth, conditional convergence, absolute convergence, underdeveloped countries, human capital, Government expenditure, population growth, labor force participation, foreign investments, and technological progress, output, capital

Authors

First Name

Asmaa

Last Name

M. Hussein

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Affiliation

Assistant Professor of Economics at the Faculty of Commerce and Business Administration Economics and Foreign Trade Helwan University, Cairo, Egypt

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Volume

15

Article Issue

1

Related Issue

46299

Issue Date

2024-01-01

Receive Date

2024-03-01

Publish Date

2024-03-30

Page Start

311

Page End

334

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_349494.html

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https://jces.journals.ekb.eg/service?article_code=349494

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31

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المقالة الأصلية

Type Code

986

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات التجارية والبيئية

Publication Link

https://jces.journals.ekb.eg/

MainTitle

An Empirical Investigation of the Exogenous Growth Model in Egypt

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Article

Created At

24 Dec 2024