The Contribution of Agricultural Manufacturing in the Egyptian Economic Growth: An Approach to Kaldor's Hypotheses | Chapter 1 | Current Topics in Agricultural Sciences Vol. 4

 Agricultural industrialization accomplishes a number of objectives, including enhancing economic growth, increasing exports, replacing imports, and providing new job possibilities, all of which contribute to a higher standard of life. This study employs Kaldor's assumptions to evaluate the contribution of the agricultural manufacturing sector to the Egyptian agricultural sector's economic growth from 1997 to 2018. It is based on the three "growth assumptions." The Kaldor model is based on three hypotheses about the relationship between manufacturing sector expansion and economic growth. The growth rate, dummy variable, Ordinary Least Square (OLS) test, CUSUM squares test, and Chow breakpoint test were all used in the study. In addition, E-view 11.0 was used to test the stability of time series. The food, beverage, tobacco, and textile industries are the two major sectors in the Egyptian agricultural manufacturing industries, accounting for approximately 83.58 percent of the entire value of the agricultural manufacturing industries production from 1997 to 2018. The findings reveal that higher real growth rates in the food, beverage, tobacco, and textile industries led to higher real growth rates in agricultural output. The year 2003 is considered the switch point for the study variables by the CUSUM Sq test and the Chow test. In addition, when the rate of real farm manufacturing production growth rises, so will the rate of real agricultural manufacturing labour productivity growth. Furthermore, when the real growth rate of agricultural manufacturing production value rises, so will the real growth rate of agricultural non-manufacturing labour productivity. The findings of the study aid decision-makers in Egypt's manufacturing industry and agriculture, particularly in the early stages of economic development.

Author(S) Details

Ahmed Abou El-Yazid El-Rasoul
Department of Economics and Agribusiness, Faculty of Agriculture, Alexandria University, Egypt.

Mai Mustafa Hassan Morsi
Department of Economics and Agribusiness, Faculty of Agriculture, Alexandria University, Egypt.

Mohamed Ibrahim Younis
Department of Economics and Agribusiness, Faculty of Agriculture, Alexandria University, Egypt.

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