Economic Analysis of Agricultural Investment in Egypt

Document Type : Original Article


1 مدرس بقسم الاقتصاد الزراعي- كلية الزراعة- جامعة الزقازيق

2 faculty of agriculture, Benha university

3 faculty of agriculture Benha university


This research aims to study the criteria for agricultural investment efficiency in Egypt, in addition to estimating the economic growth function by examining the relationship between GDP and both government and private agricultural investments using standard estimation methods, including time series analysis, unit root tests, co-integration, and causal relationship analysis. The research results indicate that all unit root tests for the variables in the standard model suffer from instability at their levels and first differences, while they all stabilize at the second differences. The results also reveal a balanced relationship between these variables, indicating that they do not deviate from each other, showing a similar behavior. From the co-integration equation, it is evident that it has a long-term impact on Agricultural Domestic Product (ADP). Moreover, the impact of government agricultural investment is greater than that of private agricultural investment on Agricultural Domestic Product. The coefficient of government agricultural investment was approximately 0.22, while the coefficient of private agricultural investment was around 0.18. The results also show that the impact of both government and private agricultural investments on Agricultural Domestic Product is weak and insufficient to achieve the desired economic growth. This suggests the need for additional measures or increased investment in the agricultural sector by both the government and the private sector to promote agricultural growth and achieve sustainable economic development.


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