European Parliament Library

Egypt—Searching for Binding Constraints on Growth, Klaus-Stefan Enders

Since 2004 Egypt's growth has been accelerating in step with the launching of a series of ambitious reforms, reversing a trend during the preceding half-decade when Egypt's growth rate fell below that of most regional peers and well below that of the average developing country. This paper seeks to identify factors that held back Egypt's growth in the recent past, and explores whether recent reforms have removed the most binding constraints to allow at least a temporary growth spurt. Overall, the Egyptian reforms launched in 2004 appear to have focused well on the most critical constraints-reducing red tape and tax rates, and improving access to foreign exchange-thereby getting a strong growth response out of a limited set of reforms. However, inefficient bureaucracy remains an important obstacle to higher growth and reforms in this area should continue to have high payoffs. Ongoing reforms are also addressing constraints that are likely to become binding soon (or have become so already), such as inefficient financial intermediation and high public debt. Improvements in education may rapidly become a critical factor for sustaining higher growth
Table Of Contents
Contents; I. Introduction; Tables; 1. Real per Capita GDP Growth Rates; Figures; 1. Real per Capita GDP Growth; II. Searching for Binding Constraints on Growth; A. Is it Financing?; 2. The Most Problematic Factors for Doing Business; 2. National Savings, 1995-2005; 3. Real Bank Lending Rates, 1990-2005; 4. External Current Account, 1995-2005; 5. Private Credit, 1995-2005; 6. Banking Spreads (Lending Minus Deposit Rates), 1980-2005; B. Appropriability of Returns; 7. Private Sector Real Wages, 1995-2004; 8a. Sovereign Spread; 8b. Dollarization and Inflation; 3. Ease of Doing Business
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
Form Of Item

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