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Implementing Cash Transfer Programmes in Egypt Differently: An Economic Impact Analysis

Author

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  • Helmy, Imane
  • Ghoneim, Hebatallah
  • Siddig, Khalid

Abstract

Using a Computable General Equilibrium model, this study simulates replacing in-kind subsidies in Egypt with targeted unconditional and conditional cash transfers as well as a universal basic income scheme financed through subsidies removal and progressive income taxes. The findings of this study show a strong complementarity between cash transfer and productive investment in health and education. Accordingly, combining targeted cash transfer with education and health conditionality is more likely to stimulate the economy and generate better outcomes in terms of welfare effect, demand for labour and production in addition to the positive human capital impact expected in the long-run. Universal basic income would not be a panacea for mitigating the adverse effect of subsidies removal on the Egyptian economy and the welfare of low and middle-income households.

Suggested Citation

  • Helmy, Imane & Ghoneim, Hebatallah & Siddig, Khalid, 2019. "Implementing Cash Transfer Programmes in Egypt Differently: An Economic Impact Analysis," Conference papers 333055, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333055
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    File URL: https://ageconsearch.umn.edu/record/333055/files/9418.pdf
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    References listed on IDEAS

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