An Econometric Study of The Determinants of Agricultural Investment in Egypt

Salem, Fathia Radwan; Mousa, Mourad; Taha Ahmed, Amira

doi:10.21608/jsas.2020.18738.1182

An Econometric Study of The Determinants of Agricultural Investment in Egypt

Document Type : Original Research Paper

Authors

Department of Agricultural Economics. Faculty of Agriculture Kafr El- Sheikh

10.21608/jsas.2020.18738.1182

Abstract

Agricultural investment is the basis for the success of agricultural development, as it is the main pillar to increase production as well as increase income and create more jobs, Investment is a flowing variable that has an active role in finding solutions to the problems of the Egyptian economy as well as absorbing some of the non-working manpower to contribute to reducing the problem of unemployment. Its importance comes at the forefront of national goals to face the growing economic problems.It also notes the decline of agricultural investments, so the research aims to identify the determinants of agricultural investment using the method of joint integration, The research relied on many research methods, including the descriptive and quantitative methods of the variables under study. The research relied on the published and unpublished secondary data. The results indicate that agricultural investment represents about 24.7 billion pounds, which represents 6% of the total investment. Agricultural GDP, the value of savings, the value of agricultural loans, the research recommends The need to increase the volume of investments directed to the agricultural sector, where the annual growth rate of about 4.6%, which is lower than the rate of growth of national investment, which reached about 13.1%, And the need to increase agricultural loans where it was found that increasing the value of agricultural loans by 10% leads to increase the volume of agricultural investment by about 13.1%.

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