Measuring the Impact of Natural Gas Exports on Economic Growth in Egypt: Quantitative Study
110 Pages Posted: 31 Oct 2016
Date Written: September 1, 2010
Abstract
This research addresses important empirical questions regarding the relationship between natural gas exports and Egyptian economic growth by extending the Dirtsakis’s model (Dritsakis, 2004, p. 1834) with the addition of the labor force into the model and further by addressing the issue in a disaggregated framework.
The hypotheses to be tested are the following: Does export expansion cause economic growth in Egypt? Does the Export-Led-Growth (ELG) hypothesis apply in Egypt? Does expansion of natural gas exports cause economic growth in Egypt? Does the Natural-Gas-Export-Led-Growth (NGELG) hypothesis apply in Egypt?
This study analyzes the issue of ELG and NGELG hypotheses in Egypt using the VAR analysis, quarterly time-series data over the period 1991:q1-2009:q4.
The results tend to favor the effectiveness and validity of the ELG and NGELG hypotheses for Egypt. In other words, The results indicate that Natural Gas exports promote economic growth.
Keywords: Export-Led-Growth Hypothesis, ELG, Economic Growth, Developing Countries, Egypt, Time Series, Egypt, Natural Gas
JEL Classification: C01, C12, C13, C32, O10, O16, O40, O47
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