Revisting the Trade-Growth Nexus: Further Evidence from Egypt
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Nasser R Al-Mawali
This paper utilizes Feder’s production function in revisiting the relationship between exports and economic growth by testing the hypothesis of the export-led growth in relation to the Arab Republic of Egypt. It also aims to show the difference in the marginal productivities between the export and non-export sectors in Egypt and how the export sector can positively affect the non-export sectors. The model mainly adopts a supply-side description of the economy, using the neo-classical growth approach under the framework of an aggregate production function. The conclusion of the study is that marginal productivities are higher in the export sector than in the non-export sector. This will allow the Egyptian economy to grow faster without having new capital infusion or labor expansion simply by reallocating the limited resources into the export sector. The reallocation of resources to the export sector will produce positive externalities and result in higher productivity for the whole Egyptian economy.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Article
- Is Natural Resource Wealth Compatible with Good Governance?
- Defense Spending and Economic Growth in Turkey: An Empirical Application of New Macroeconomic Theory
- Moving Holidays and Seasonal Adjustment: The Case of Turkey
- Revisting the Trade-Growth Nexus: Further Evidence from Egypt
- Book Review
Articles in the same Issue
- Article
- Is Natural Resource Wealth Compatible with Good Governance?
- Defense Spending and Economic Growth in Turkey: An Empirical Application of New Macroeconomic Theory
- Moving Holidays and Seasonal Adjustment: The Case of Turkey
- Revisting the Trade-Growth Nexus: Further Evidence from Egypt
- Book Review
