Is the Export-Led-Growth Hypothesis, Valid for Egypt? A Time Series Approach

Authors

Nagwa Khashaba, Suez Canal UniversityFollow
Abdelhamid Mahboub, Zagazig University
William Latham, University of DelawareFollow
Mostafa AboElsoud, The British University in EgyptFollow

Document Type

Article

Publication Date

Summer 2010

Abstract

This research addresses important empirical questions regarding the relationship between Egyptian exports and Egyptian economic growth by extending the Dirtsakis’s model (Dritsakis, 2004, p. 1834) with the addition of the labor force into the model. The hypothesis to be tested is, does export expansion cause economic growth in Egypt? In other words, is the Export-Led-Growth (ELG) hypothesis valid for Egypt?

This study analyzes the issue of ELG hypothesis in Egypt using the VAR analysis, quarterly time-series data over the period 1991:q1-2009:q4. The results tend to favor the effectiveness and validity of the ELG hypothesis for Egypt.

Recommended Citation

Khashaba, N., Mahboub, A., Latham, W., & AboElsoud, M. (2010). Is the Export-Led-Growth Hypothesis, Valid for Egypt? A Time Series Approach. L’Egypte Contemporaine Journal, 500, 5-25, Cairo, Egypt.