An Estimate Study to Measure the Impact of Social Spending Changes on Poverty Rates in Egyptian Desert and Non-Desert Governorates

Document Type : Original Article


Economic Studies Department - Economic and Social Studies Division - Desert Research Center - Cairo - Egypt



Society's progress is largely determined by the size of a country's social spending, as well as policies to reduce poverty. The research problem represents testing whether social spending allocations are appropriate to the needs of the governorates to reduce their poverty levels. Therefore, the objectives of research are estimate increasing social spending impact reducing the poverty rate.
The most important results were the presence significant difference between poverty rates for desert and non-desert governorates. There’s negative significant relationship between various social spending items, and total investment on poverty rates difference between two study areas. Research recommends: increasing government spending as direct policies to reduce poverty rate between the two study areas, by providing immediately high level of education and health, in parallel total investments as indirect policies, therefore reducing variation in poverty rates between the two study areas. This is done by providing financial allocations for these policies in the following amount: First: Increase social spending allocations by 10% reduces the poverty rate by about 0.97% in the desert governorates, compared to raising it by 30%, which reduces the poverty rate by about 1.10%. Second: increase total investments by 10% reduce the poverty rate by 1.1% in desert governorates, while increasing it by 30% reduces the poverty rate by 1.3%.


Main Subjects