Economic growth and development in Egypt
This research is to measure the degree of significance of different aspects of the economy to determine what factors affect the economic growth performance in Egypt. Time series analysis will be used to identify the impact of different economic factors on economic development performance in Egypt over the period 1985-2015. Ordinary Least Square technique will be applied in this paper. The first step was testing the stationarity of data using Augmented Dickey-Fuller unit root test to avoid spurious regression results. The results of the analysis showed that all factors are stationary at first difference. After that, the regression model was tested, and the results revealed that foreign direct investment has an insignificant effect on GDP per capita in Egypt while government consumption expenditures, contributing family workers and secondary school enrollment rate can affect GDP per capita positively and significantly. The results also showed a negative and significant Impact of conditions of trade and household consumption expenditures on economic evolution and dilation in Egypt. The policy implications based on the results of the test suggest more focus on the allocation and quality of foreign direct investment in different sections in Egypt. Additionally, government consumption expenditures would be beneficial for economic growth in particular spending on national defense and security. Moreover, promoting exports is a necessity to enhance trade conditions and reduce its adverse effect on economic boom or prosperity. Households consumption expenditure is required to be reduced to save more money for longterm investment. The study also suggested that government could facilitate the regulations to operate the family business. Finally, enhancing education quality is essential for economic development through providing better technologies and teaching methods.
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