This paper tests the relationship between remittances along with other macroeconomic variables such as; investment, FDI and openness to trade and GDP per capita. In order to test this relationship, this study has depended on Multiple Linear Regression Model in which time series analysis of the annual data about the variables from 1977 until 2013 is used. The results extracted from the model have shown that there is a strong positive and significant relationship between investment and GDP per capita. Besides, the results have showed that there is a strong positive and significant relationship between openness to trade and GDP per capita. However, the results have showed that there is a negative significant relationship between FDI and GDP per capita. Moreover, the findings have revealed that there is insignificant positive relationship between remittances and GDP per capita. Given the insignificant effect between remittances and economic growth, we have decided in this paper to use the data from the empirical survey done by the (IOM) in collaboration with the Ministry of Manpower and Migration on 200 remittance- receiving households for two main reasons. One of reasons is to identify the cause behind having this insignificant effect between the two pre-stated variables. The second reason is to demonstrate to the Government the importance of getting benefit of these international surveys to know how the remittances are used in the meantime from households’ perspective as well to demonstrate the variables that households perceive as critical and significant variables that could affect their decision to invest in the country. Finally, in this paper, we have showed case studies of how other countries have succeeded to encourage its migrants to transfer more money to be invested in productive projects. The main aim of showing these case studies is to give the Egyptian government a guideline of what are the policies and procedures it could follow to overcome the obstacles and the variables seen by the households as critical variables hindering their investment in Egypt.
Public Policy & Administration Department
MA in Public Administration
Date of Award
Online Submission Date
Committee Member 1
Committee Member 2
Library of Congress Subject Heading 1
Emigrant remittances -- Egypt.
Library of Congress Subject Heading 2
Economic development -- Egypt.
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(2015).The effect of remittances on Egypt's economic growth [Master’s thesis, the American University in Cairo]. AUC Knowledge Fountain.
Naga, Samar Amr. The effect of remittances on Egypt's economic growth. 2015. American University in Cairo, Master's thesis. AUC Knowledge Fountain.