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349496

An Empirical Test of Endogenous Growth Model for Egypt

Article

Last updated: 04 Jan 2025

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الأقتصاد

Abstract

Endogenous growth models attribute long-run growth to the accumulation of capital, enhancing labor force and technological advances. The study applied the Cobb-Douglas production function offered by Romer's endogenous growth model in Egypt using data from the World Bank over the period 1990-2022. A long-term cointegration relation is confirmed between the dependent variable real GDP, which is considered as a proxy for economic growth, and the independent variables, total factor productivity as a proxy for stock of knowledge, Real Gross Capital Formation as a proxy for capital stock and years of schooling as a proxy for labor stock. Altogether, they explain 97% of variations in real GDP. The results reveal that a 1% increase in each of the stock of knowledge and technology, capital and labor leads to a 0.04, 0.44 and 0.80 increase in real GDP, respectively in Egypt over the study period.. Which coincides with the economic theory.

DOI

10.21608/jces.2024.349496

Keywords

endogenous growth, Cobb-Douglas production function, Economic growth, knowledge and technology, capital, Labor

Authors

First Name

Rasha

Last Name

M. Elakkad

MiddleName

-

Affiliation

Assistant Professor of Economics, Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt

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City

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Orcid

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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

335

Page End

358

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_349496.html

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https://jces.journals.ekb.eg/service?article_code=349496

Order

32

Type

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 Test of Endogenous Growth Model for Egypt

Details

Type

Article

Created At

24 Dec 2024