Abstract

The main aim of this research is to examine the significance of several economic growth determinants to gauge their impact on Egypt's economic growth. This research uses annual time series analysis to assess the significance of several important variables on economic growth in Egypt for the period 1985-2007, and applies Ordinary Least Square method of estimation, with an autoregressive specification. The estimation results reveals positive and significant effect of gross fixed capital formation, foreign direct investment, investment in infrastructure, household consumption expenditure, exports and taxes on international trade on economic growth in Egypt, while the government consumption expenditure shows negative and significant effect on Egypt's economic growth. The main policy implications are the catalytic effect of gross fixed capital formation on economic growth as represented by the public and private investment, in addition, the significance of foreign direct investment in transferring technology, and providing source of finance, where the investment in infrastructure is considered a corner stone for attracting both domestic investments and foreign direct investments and boosting economic development in Egypt. Further, the exports enlarge the domestic capacity utilization and exploit economies of scale. However, the negative significance of government consumption expenditure implies the non productive spending that should be minimized and reallocated to productive spending.

Department

Economics Department

Degree Name

MA in Economics

Graduation Date

6-1-2010

Submission Date

May 2010

First Advisor

El-Shennawy, Abeer

Second Advisor

Mikhail, William

Extent

NA

Document Type

Master's Thesis

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Institutional Review Board (IRB) Approval

Not necessary for this item

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