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Internal and External Economies in Egyptian Manufacturing, 1970-1997

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  • Hélène Cottenet

Abstract

Testing for the existence of internal and external economies in Egyptian manufacturing industries can help defining an active targeted industrial policy promoting long-run growth. The Caballero and Lyons (1989) methodology has been used to disentangle external from internal economies in a production function at the two-digit level. Our findings suggest that on average in both public and private manufacturing sectors, the returns to scale are constant and that the externalities are non-existent. But some industries should deserve special attention, generating positive externalities: Chemicals, Mineral and Engineering industries in the public sector; Food and Textile industries in the private sector.

Suggested Citation

  • Hélène Cottenet, 2001. "Internal and External Economies in Egyptian Manufacturing, 1970-1997," Working Papers 0133, Economic Research Forum, revised 11 Jan 2001.
  • Handle: RePEc:erg:wpaper:0133
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    1. Robert J. Barro & Jong-Wha Lee, 1993. "Losers and Winners in Economic Growth," NBER Working Papers 4341, National Bureau of Economic Research, Inc.
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