An Economic Study of the Most Important Factors Affecting Investment in Egypt

Fangary, Alshaima M; Ahmed, Fayka A. K.

doi:10.21608/jassd.2025.377889.1051

An Economic Study of the Most Important Factors Affecting Investment in Egypt

Document Type : Original Article

Authors

¹ Agriculture economic-Faculty of Agriculture-South Valley University-Qena-Egypt

² Department of Agricultural Economics, Faculty of Agriculture and Natural Resource, Aswan University, Egypt

10.21608/jassd.2025.377889.1051

Abstract

This study aims to clarify the Key Factors Influencing Egyptian Agricultural Investment and their effects and obstacles on development in Egypt by studying both the gross and agricultural GDP, both public and private macro-and agricultural investments, investment loans granted by the Development Bank and agricultural credit, studying some economic indicators to measure the efficiency of agricultural investments in Egypt, and identifying the most important factors For national, agricultural, foreign direct and foreign agricultural investments in Egypt during the period from (04/2005-21/2022). The study has reached a set of the following results: Through the data obtained to estimate the indicative relationships between each of the factors affecting total investments in billion pounds, it turned out that the most positive factors affecting total investments are each of the variables: the interest rate in the banking system in pounds, national income in billion pounds, and GDP in billion pounds, and increasing each of them (individually) by 1% leads to an increase in total investments by 0.41%, 2.74%, 0.07%, respectively. While increasing the variable: total employment in million pounds by the same percentage leads to a decrease in total investments by 1.13 %. By measuring the value of the total elasticity coefficient of this relationship, it turned out to be estimated at about 2.09, which means that there are returns on the increasing capacity of this relationship, which encourages an increase in resources affecting total investments with a positive impact.

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