Saving and Growth in Egypt
This study illustrates the mechanisms linking national saving and economic growth, with the purpose of understanding the possibilities and limits of a saving-based growth agenda in the context of the Egyptian economy. This is done through a simple...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110113095021 http://hdl.handle.net/10986/3302 |
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okr-10986-3302 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ANNUAL DEPRECIATION RATE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE GROWTH AVERAGE GROWTH RATE BENCHMARK BORROWER BORROWING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CONSTANT RATE CONTRACT ENFORCEMENT CURRENT ACCOUNT DEBT DEMOGRAPHIC DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGY DIMINISHING RETURNS DISPOSABLE INCOME DOMESTIC SAVING EARNINGS ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYEE EXPENDITURES EXTERNAL FINANCING FACTOR ACCUMULATION FACTORS OF PRODUCTION FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEM FIRM PERFORMANCE FOREIGN CAPITAL FOREIGN DEBT FOREIGN INVESTORS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH EQUATION GROWTH MODELS GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH THEORY HOUSEHOLDS HUMAN CAPITAL INCREASED INVESTMENT INEQUALITY INFRASTRUCTURE INVESTMENT INSTITUTIONAL REFORM INTEREST RATE INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INVENTORY INVESTMENT CLIMATE INVESTMENT OPPORTUNITIES INVESTMENT RATE LABOR FORCE LABOR INPUT LABOR MARKET LEVEL OF CAPITAL LONG RUN MACROECONOMIC ANALYSIS MACROECONOMIC STABILITY MACROECONOMICS MARGINAL PRODUCTIVITY MARGINAL RETURNS MARKET ECONOMIES MEDIUM TERM MONETARY POLICY MULTINATIONAL NATIONAL ACCOUNTS NATIONAL INCOME NET EXPORTS NEW BUSINESS OPEN ECONOMIES OPEN ECONOMY OUTPUT GROWTH OWNERSHIP STRUCTURE PER CAPITA GROWTH PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY MAKERS POLICY MEASURES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PRIVATE SAVINGS PRIVATIZATION PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY GROWTH PRODUCTIVITY OF CAPITAL PROFITABILITY PUBLIC EXPENDITURES PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT RATE OF GROWTH RATE OF RETURN RELATIVE CONTRIBUTION REMITTANCES RISK PREMIUM SAVING RATE SAVINGS SECTOR REFORMS SHARE OF OUTPUT SOLVENCY SOURCES OF FUNDS TAX TAX BURDEN TAX CODE TECHNOLOGICAL INNOVATION TFP TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT VALUATION VALUE OF OUTPUT |
| spellingShingle |
ANNUAL DEPRECIATION RATE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE GROWTH AVERAGE GROWTH RATE BENCHMARK BORROWER BORROWING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CONSTANT RATE CONTRACT ENFORCEMENT CURRENT ACCOUNT DEBT DEMOGRAPHIC DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGY DIMINISHING RETURNS DISPOSABLE INCOME DOMESTIC SAVING EARNINGS ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYEE EXPENDITURES EXTERNAL FINANCING FACTOR ACCUMULATION FACTORS OF PRODUCTION FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEM FIRM PERFORMANCE FOREIGN CAPITAL FOREIGN DEBT FOREIGN INVESTORS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH EQUATION GROWTH MODELS GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH THEORY HOUSEHOLDS HUMAN CAPITAL INCREASED INVESTMENT INEQUALITY INFRASTRUCTURE INVESTMENT INSTITUTIONAL REFORM INTEREST RATE INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INVENTORY INVESTMENT CLIMATE INVESTMENT OPPORTUNITIES INVESTMENT RATE LABOR FORCE LABOR INPUT LABOR MARKET LEVEL OF CAPITAL LONG RUN MACROECONOMIC ANALYSIS MACROECONOMIC STABILITY MACROECONOMICS MARGINAL PRODUCTIVITY MARGINAL RETURNS MARKET ECONOMIES MEDIUM TERM MONETARY POLICY MULTINATIONAL NATIONAL ACCOUNTS NATIONAL INCOME NET EXPORTS NEW BUSINESS OPEN ECONOMIES OPEN ECONOMY OUTPUT GROWTH OWNERSHIP STRUCTURE PER CAPITA GROWTH PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY MAKERS POLICY MEASURES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PRIVATE SAVINGS PRIVATIZATION PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY GROWTH PRODUCTIVITY OF CAPITAL PROFITABILITY PUBLIC EXPENDITURES PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT RATE OF GROWTH RATE OF RETURN RELATIVE CONTRIBUTION REMITTANCES RISK PREMIUM SAVING RATE SAVINGS SECTOR REFORMS SHARE OF OUTPUT SOLVENCY SOURCES OF FUNDS TAX TAX BURDEN TAX CODE TECHNOLOGICAL INNOVATION TFP TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT VALUATION VALUE OF OUTPUT Hevia, Constantino Loayza, Norman Saving and Growth in Egypt |
| geographic_facet |
Middle East and North Africa Egypt, Arab Republic of |
| relation |
Policy Research working paper ; no. WPS 5529 |
| description |
This study illustrates the mechanisms
linking national saving and economic growth, with the
purpose of understanding the possibilities and limits of a
saving-based growth agenda in the context of the Egyptian
economy. This is done through a simple theoretical model,
calibrated to fit the Egyptian economy, and simulated to
explore different potential scenarios. The main conclusion
is that if the Egyptian economy does not experience progress
in productivity -- stemming from technological innovation,
improved public management, and private-sector reforms --
then a high rate of economic growth is not feasible at
current rates of national saving and would require a saving
effort that is highly unrealistic. For instance, financing a
constant 4 percent growth rate of gross domestic product per
capita with no improvement in total factor productivity
would require a national saving rate of around 50 percent in
the first decade and 80 percent in 25 years. However, if
productivity rises, sustaining and improving high rates of
economic growth becomes viable. Following the previous
example, a 2 percent growth rate of total factor
productivity would allow a 4 percent growth rate of gross
domestic product per capita with national saving rate in the
realistic range of 20-25 percent of gross domestic product. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hevia, Constantino Loayza, Norman |
| author_facet |
Hevia, Constantino Loayza, Norman |
| author_sort |
Hevia, Constantino |
| title |
Saving and Growth in Egypt |
| title_short |
Saving and Growth in Egypt |
| title_full |
Saving and Growth in Egypt |
| title_fullStr |
Saving and Growth in Egypt |
| title_full_unstemmed |
Saving and Growth in Egypt |
| title_sort |
saving and growth in egypt |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110113095021 http://hdl.handle.net/10986/3302 |
| _version_ |
1764386760061616128 |
| spelling |
okr-10986-33022021-04-23T14:02:08Z Saving and Growth in Egypt Hevia, Constantino Loayza, Norman ANNUAL DEPRECIATION RATE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE GROWTH AVERAGE GROWTH RATE BENCHMARK BORROWER BORROWING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CONSTANT RATE CONTRACT ENFORCEMENT CURRENT ACCOUNT DEBT DEMOGRAPHIC DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGY DIMINISHING RETURNS DISPOSABLE INCOME DOMESTIC SAVING EARNINGS ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYEE EXPENDITURES EXTERNAL FINANCING FACTOR ACCUMULATION FACTORS OF PRODUCTION FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEM FIRM PERFORMANCE FOREIGN CAPITAL FOREIGN DEBT FOREIGN INVESTORS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH EQUATION GROWTH MODELS GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH THEORY HOUSEHOLDS HUMAN CAPITAL INCREASED INVESTMENT INEQUALITY INFRASTRUCTURE INVESTMENT INSTITUTIONAL REFORM INTEREST RATE INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INVENTORY INVESTMENT CLIMATE INVESTMENT OPPORTUNITIES INVESTMENT RATE LABOR FORCE LABOR INPUT LABOR MARKET LEVEL OF CAPITAL LONG RUN MACROECONOMIC ANALYSIS MACROECONOMIC STABILITY MACROECONOMICS MARGINAL PRODUCTIVITY MARGINAL RETURNS MARKET ECONOMIES MEDIUM TERM MONETARY POLICY MULTINATIONAL NATIONAL ACCOUNTS NATIONAL INCOME NET EXPORTS NEW BUSINESS OPEN ECONOMIES OPEN ECONOMY OUTPUT GROWTH OWNERSHIP STRUCTURE PER CAPITA GROWTH PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY MAKERS POLICY MEASURES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PRIVATE SAVINGS PRIVATIZATION PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY GROWTH PRODUCTIVITY OF CAPITAL PROFITABILITY PUBLIC EXPENDITURES PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT RATE OF GROWTH RATE OF RETURN RELATIVE CONTRIBUTION REMITTANCES RISK PREMIUM SAVING RATE SAVINGS SECTOR REFORMS SHARE OF OUTPUT SOLVENCY SOURCES OF FUNDS TAX TAX BURDEN TAX CODE TECHNOLOGICAL INNOVATION TFP TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT VALUATION VALUE OF OUTPUT This study illustrates the mechanisms linking national saving and economic growth, with the purpose of understanding the possibilities and limits of a saving-based growth agenda in the context of the Egyptian economy. This is done through a simple theoretical model, calibrated to fit the Egyptian economy, and simulated to explore different potential scenarios. The main conclusion is that if the Egyptian economy does not experience progress in productivity -- stemming from technological innovation, improved public management, and private-sector reforms -- then a high rate of economic growth is not feasible at current rates of national saving and would require a saving effort that is highly unrealistic. For instance, financing a constant 4 percent growth rate of gross domestic product per capita with no improvement in total factor productivity would require a national saving rate of around 50 percent in the first decade and 80 percent in 25 years. However, if productivity rises, sustaining and improving high rates of economic growth becomes viable. Following the previous example, a 2 percent growth rate of total factor productivity would allow a 4 percent growth rate of gross domestic product per capita with national saving rate in the realistic range of 20-25 percent of gross domestic product. 2012-03-19T17:59:51Z 2012-03-19T17:59:51Z 2011-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110113095021 http://hdl.handle.net/10986/3302 English Policy Research working paper ; no. WPS 5529 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Egypt, Arab Republic of |