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300471

Efficiency of Agricultural Investment and its Role in Economic Development in Egypt

Article

Last updated: 28 Dec 2024

Subjects

-

Tags

Economic and socio agricultural

Abstract

This research aims to study the standards of agricultural investment efficiency in Egypt, as well as estimate the economic growth function by studying the relationship between GDP and both government and private agricultural investment. This will be done using investment efficiency standards and standard measurement methods based on time series analysis, unit root tests, and cointegration tests. The causal relationship between agricultural GDP and both government and private agricultural investment will also be studied. The study results show that all study variables have shown a generally increasing and statistically significant trend. Unit root tests have shown that all standard model variables suffer from instability at their levels and first differences, while they stabilize at their second differences. The cointegration test has shown that there is more than one cointegrating vector at a 5% significance level, rejecting the null hypothesis and accepting the alternative hypothesis. This confirms the existence of a long-term equilibrium relationship between the variables in the model. The cointegration equation indicates the impact of each variable on agricultural GDP in the long term, showing that the impact of government agricultural investment is greater than the impact of private agricultural investment on agricultural GDP, with a coefficient of about 0.18 for government investment and 0.13 for private investment. Therefore, the combined effect of both government and private agricultural investment on agricultural GDP is considered weak and insufficient to achieve the desired economic growth.

DOI

10.21608/nvjas.2023.206510.1199

Keywords

Investment multiplier, Endemic Factors, Investment rate, Capital Intensification

Authors

First Name

Gamal

Last Name

Kamel

MiddleName

Hassan

Affiliation

Department of Agricultural Economics, Faculty of Agric., New Valley Univ., Egypt.

Email

gamal.hassan@agr.nvu.edu.eg

City

-

Orcid

0009-0002-2308-3622

First Name

Ahmed

Last Name

Mohamed

MiddleName

I

Affiliation

Department of Agricultural Economics, Faculty of Agriculture, Al-Azhar University, Assuit, P.O. Box 71524 Egypt.

Email

ahmed22@yahoo.com

City

-

Orcid

-

First Name

Moataz

Last Name

Eliw

MiddleName

-

Affiliation

Department of Agricultural Economics, Faculty of Agriculture, Al-Azhar University, Assuit, P.O. Box 71524 Egypt.

Email

moatazeliw@azhar.edu.eg

City

-

Orcid

0000-0003-0666-3502

Volume

3

Article Issue

8

Related Issue

40586

Issue Date

2023-04-01

Receive Date

2023-04-17

Publish Date

2023-05-26

Page Start

813

Page End

822

Print ISSN

2805-2420

Online ISSN

2805-2439

Link

https://nvjas.journals.ekb.eg/article_300471.html

Detail API

https://nvjas.journals.ekb.eg/service?article_code=300471

Order

5

Type

Original Research

Type Code

2,101

Publication Type

Journal

Publication Title

New Valley Journal of Agricultural Science

Publication Link

https://nvjas.journals.ekb.eg/

MainTitle

Efficiency of Agricultural Investment and its Role in Economic Development in Egypt

Details

Type

Article

Created At

28 Dec 2024