Egyptâ€”Searching for Binding Constraints on Growth
Since 2004 Egypt's growth has been accelerating in step with the launching of a series of ambitious reforms, reversing a trend during the preceding half-decade when Egypt's growth rate fell below that of most regional peers and well below that of the average developing country. This paper seeks to identify factors that held back Egypt's growth in the recent past, and explores whether recent reforms have removed the most binding constraints to allow at least a temporary growth spurt. Overall, the Egyptian reforms launched in 2004 appear to have focused well on the most critical constraints-reducing red tape and tax rates, and improving access to foreign exchange-thereby getting a strong growth response out of a limited set of reforms. However, inefficient bureaucracy remains an important obstacle to higher growth and reforms in this area should continue to have high payoffs. Ongoing reforms are also addressing constraints that are likely to become binding soon (or have become so already), such as inefficient financial intermediation and high public debt. Improvements in education may rapidly become a critical factor for sustaining higher growth.
|Date of creation:||01 Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: International Monetary Fund, Washington, DC USA|
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2006.
"What You Export Matters,"
CEPR Discussion Papers
5444, C.E.P.R. Discussion Papers.
- Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005. "What You Export Matters," NBER Working Papers 11905, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005. "What You Export Matters," Working Paper Series rwp05-063, Harvard University, John F. Kennedy School of Government.
- Anton Dobronogov & Farrukh Iqbal, 2004.
"Economic Growth in Egypt: Constraints and Determinants,"
0420, Economic Research Forum, revised Oct 2004.
- Anton Dobronogov & Farrukh Iqbal, 2007. "Economic Growth in Egypt: Constraints and Determinants," Journal of African Development, African Finance and Economic Association, vol. 9(1), pages 31-66.
- Anton Dobronogov & Farrukh Iqbal, 2005. "Economic Growth in Egypt: Constraints and Determinants," Development and Comp Systems 0512024, EconWPA.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003.
NBER Working Papers
9908, National Bureau of Economic Research, Inc.
- Ricardo Hausmann & Lant Pritchett & Dani Rodrik, 2004.
NBER Working Papers
10566, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004. "Growth Accelerations," CEPR Discussion Papers 4538, C.E.P.R. Discussion Papers.
- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004. "Growth Accelerations," Working Paper Series rwp04-030, Harvard University, John F. Kennedy School of Government.
- George Psacharopoulos & Harry Anthony Patrinos, 2004.
"Returns to investment in education: a further update,"
Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
- Rodolphe Blavy, 2006. "Public Debt and Productivity: The Difficult Quest for Growth in Jamaica," IMF Working Papers 06/235, International Monetary Fund.
- Susan Creane & Rishi Goyal & A. Mushfiq Mobarak & Randa Sab, 2006. "Measuring Financial Development in the Middle East and North Africa: A New Database," IMF Staff Papers, Palgrave Macmillan, vol. 53(3), pages 7.
- Arvind Subramanian, 1997. "The Egyptian Stabilization Experience: An Analytical Retrospective," IMF Working Papers 97/105, International Monetary Fund.
- Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
- repec:rus:hseeco:123922 is not listed on IDEAS
- David Hauner, 2006. "Fiscal Policy and Financial Development," IMF Working Papers 06/26, International Monetary Fund.
- R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
- Indermit S. Gill & Todd Pugatch, 2005. "At the Frontlines of Development : Reflections from the World Bank," World Bank Publications, The World Bank, number 7357, June.
- Jeromin Zettelmeyer, 2006. "Growth and Reforms in Latin America: A Survey of Facts and Arguments," IMF Working Papers 06/210, International Monetary Fund.
- Ministry of Planning of the Arab Repubic of Egypt & World Bank, 2004. "A Poverty Reduction Strategy for Egypt," World Bank Other Operational Studies 15713, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:07/57. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow)or (Hassan Zaidi)
If references are entirely missing, you can add them using this form.