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Economic Growth Before and After Reform: The Case of Egypt, 1973-2002

  • Kamaly, A.
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    This study analyzes the sources of growth in Egypt starting from the end of 1973 war until 2002. The study uses a new estimate for capital stock to estimate a skill-augmented aggregate production function for Egypt. Using growth accounting technique, the study decomposes growth into factor accumulation and productivity change. Results indicate that the relative importance of the sources of growth changes from one period to another. The eminent growth after the 1973 war was driven by high growth in capital accumulation and productivity. The poor performance in the 1980s could be attributed to the slowdown in capital growth as well as the dismal growth in productivity. This downward trend in capital growth continued even after the structural adjustment program in 1991 raising the contribution of labor in economic growth to a level close to the contribution of capital. Productivity, on the other hand, has shown signs for improvement starting from the second half of the 1990s.

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    Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

    Volume (Year): 3 (2006)
    Issue (Month): 2 ()
    Pages: 21-54

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    Handle: RePEc:eaa:ijaeqs:v:3:y2006:i:2_2
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