An Analytical Study of The most Important Indicators and Determinants of Inclusive Growth in Egyptian Agriculture

Document Type : Original Article

Authors

1 Economics and Agribusiness Dept., Fac. of Agric., Alexandria Univ., Egypt

2 Agric. Economics Res. Inst., Agric. Res. Center, Egypt

Abstract

The prospects for inclusive growth in Egyptian agriculture are important and to policy makers in Egypt, as inclusive growth is a necessary condition for poverty reduction, as it ensures that all people benefits of growth, especially the poor and marginalized groups, it would reduce inequality. The aim of the research was to study and analyze the determinants of inclusive growth in the Egyptian agricultural sector. The ARDL model was used to explore the relationship between the determinants of inclusive growth in Egyptian agriculture in the long-run, as well as the ECM model to confirm the existence of a long-run relationship and to estimate the short-run relationship. The research was based on annual time series data covering the period 1995-2021. The results of the analysis provide strong evidence indicating the existence of a number of variables that could be drivers of inclusive growth in Egyptian agriculture. The study concluded that the most important determinants of inclusive growth in Egypt are: total agricultural investment, total agricultural loans, average per capita income in rural areas, and governance index, as these are positively associated with significant changes in inclusive growth in the sector. On the contrary, is the case with regard to the annual inflation rate and the food production index. The study recommends an increase in agricultural investment and increase the supply of short-run and long-run credit to farmers. The government should also work to improve macroeconomic stability, achieve good governance, reduce the rate of inflation and improve the quality of the population through the development of education and health policy.

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