Measuring the Impact of the Agricultural Investment on Agricultural Income Growth in Egypt

Document Type : Original Article

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Abstract

The purpose of this research is mainly to identify the most important economic variables affecting the private agricultural investment further,ameasure of the impact of the private agricultural investment on agricultural income investment is growth made.More Specifically, the objectives of the study are: (1) To identify the current status of the total agricultural investment on agricultural and investment in Egypt, (2)To  measure the impact of economic variables on private agricultural investment in Egypt, (3) To measure the impact of the agricultural investment on agricultural income growth, (4) To identify the most important problems and obstacles facing the private agricultural investment in Egypt.
Some of the study results are as follows:
(1)Both of the total and private agricultural investmentsare found to be declining by annual rates of 9.4% and 13.74%, respectively, during the study period 2000-2013. This result is found to be statistically significant at the 1% level. (2) The average shares of the private agricultural investment and the public one are set at 61.32% and 37.29%, respectively, of the total agricultural investments during the study period. (3) The most prominent economic factors affecting private agricultural investments are agricultural loans, agricultural domestic product, and average agricultural wages. These three variables explain about 91% of the variations in private agricultural investments during the study period. And (4) the study emphasized the significance of the positive impact of the private agricultural investments on promoting the growth rate of the agricultural sector.  Accordingly,
the study recommends the following:
(1) the Government of Egypt must show some flexibility when dealing with investment issues (obtaining licenses and having coordinationamongst governmental entities concerned with agricultural investment). (2) Information and data must be availed to investors to enable them to make decent and correct investment decisions. (3) Facilitating the process of loan acquisition, both short and long-term loans. In addition, simplification of collaterals is a must to increase investment incentives. (4) More emphasis should be directed to improving the infrastructure, particularly those in the newly-developed regions for the sake of promoting agricultural investments.  And (5) working on availing and designing agricultural investment maps to display to investors the available investment priorities, locations of proper investments, and regions most suitable for agricultural investments.

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