An Empirical Investigation of the Exogenous Growth Model in Egypt | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Article 31, Volume 15, Issue 1, January 2024, Pages 311-334 PDF (507.66 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2024.349494 | ||
| Author | ||
| Asmaa M. Hussein* | ||
| Assistant Professor of Economics at the Faculty of Commerce and Business Administration Economics and Foreign Trade Helwan University, Cairo, Egypt | ||
| Abstract | ||
| This research paper provides a practical examination of the exogenous growth model in Egypt from 1990 to 2022. As the exogenous growth models, including the Harrod-Domar classical model and the Solow-Swan neoclassical models, explain the main determinants of economic growth in developing countries, The focus of this study is to examine the validity of the exogenous growth model in Egypt and analyze its implications for the country's economic performance. In line with the exogenous growth theory, the paper highlights the significance of direct investment, labor force growth, and technological advances in achieving output growth. The concept of conditional convergence is introduced, suggesting that countries with similar economic conditions will reach the same steady state of growth in the long run. The paper explores the idea of absolute convergence, where underdeveloped countries have the potential to grow faster than developed ones by enhancing human capital and benefiting from diminishing returns to capital. The empirical studies discussed in the paper provide insights into the applicability of exogenous growth models in different countries by analyzing economic growth determinants and examining the relationships between variables such as government expenditure, population growth, labor force participation, foreign investments, and technological progress. This study aims to evaluate the exogenous growth model's validity in the Egyptian context by focusing on Egypt. To assess the model's explanatory power, it investigates the relationships between key variables, such as output, capital, labor force, and technological progress. The findings of this study contribute to the understanding of Egypt's economic growth dynamics and provide insights for policymakers. | ||
| Keywords | ||
| exogenous growth model; Harrod-Domar classical model; Solow-Swan neoclassical models; Economic growth; conditional convergence; absolute convergence; underdeveloped countries; human capital; government expenditure; population growth; labor force participation; foreign investments; and technological progress; output; capital | ||
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