Effect of the Overall Contestability on Economic Growth: Applied Study on the Egyptian Economy
Posted: 6 Oct 2016
Date Written: January 3, 2013
Abstract
This paper investigates the relationship between economic growth and overall contestability in the Egyptian economy during the period of 1995-2011. I apply the newly developed autoregressive distributed lag (ARDL) bounds approach to cointegration developed by Pesaran et al. (2001). The purpose is to answer two questions. First, is there an effect on the short and long run for the overall contestability on economic growth in the Egyptian economy? Second, is there a causal relationship between the overall contestability and the economic stress variables? Results provide insight to policy maker to the major political and economic challenges they will face. Also it will introduce multi-policy needed to be adopted and the inclusive approach that will encourage the openness of markets to global competition in order to create truly internationally contestable markets.
Keywords: Growth, overall Contestability, Economic stress, ARDL
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