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Debt Sustainabiliy And Economic Growth In Egypt

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  • Adel M. EL-MAHDY
  • Neveen M. TORAYEH

Abstract

The persistence growth of Egypt's public domestic debt has raised concerns regarding its impact on economic growth and fears are being express about the debt sustainability. Utilizing data for the period 1981-2006, the results obtained from cointegration model reveal that the public domestic debt in Egypt has a robust negative impact on growth. The sustainability of debt was examined used some algebra methods. The results suggested that the recent path of debt followed in Egypt was sustainable. For debt to remain sustained in future, substantial fiscal reforms are needed and policies should be adopting to maintain an increasing growth-interest rate differential.

Suggested Citation

  • Adel M. EL-MAHDY & Neveen M. TORAYEH, 2009. "Debt Sustainabiliy And Economic Growth In Egypt," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    • Handle: RePEc:eaa:ijaeqs:v:9:y2009:i:1_2
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    References listed on IDEAS

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    Cited by:

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    2. Mohammed Daher Alshammary & Zulkefly Abdul Karim & Norlin Khalid & Riayati Ahmad, 2020. "Debt-Growth Nexus in the MENA Region: Evidence from a Panel Threshold Analysis," Economies, MDPI, vol. 8(4), pages 1-12, November.
    3. Pollyne Mbithe Mutunga, 2020. "Public Debt and It’s Implication on Kenya’s Future Economic Growth," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 218-223, August.
    4. Emmanuel Chinanuife & Paul Eze & Ozoemena S. Nwodo, 2018. "Public Debt Spiral and Domestic Investment in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 153-161, March.
    5. Aleksandr Arsenev & Meryem Gökten & Philipp Heimberger & Andreas Lichtenberger, 2024. "Full Employment: A Survey of Theory, Empirics and Policies," wiiw Working Papers 249, The Vienna Institute for International Economic Studies, wiiw.
    6. Bitar, Nicholas & Chakrabarti, Avik & Zeaiter, Hussein, 2018. "Were Reinhart and Rogoff right?," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 614-620.
    7. Pollyne Mbithe Mutunga, 2020. "Does Public Debt affect Private Investment in Kenya? ARDL Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(7), pages 257-261, July.

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    More about this item

    Keywords

    Public Domestic Debt; Fiscal Budget; Debt Sustainability; Economic Growth; Cointegration.;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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