Munich Personal RePEc Archive

Estimating Egypt’s Potential Output: A Production Function Approach

El-Baz, Osama (2016): Estimating Egypt’s Potential Output: A Production Function Approach.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_71652.pdf

Download (732kB) | Preview

Abstract

The Egyptian economy has witnessed deterioration in its main macroeconomic indicators over the period (2008-2014). The main purpose of the paper was to estimate Egypt's potential output and identify the factors that might be responsible for the divergence of actual and potential output from each other. We used the production function approach to derive estimates of potential output and output gap over the period (1990-2014). The results of the analysis revealed that capital stock was the dominant factor contributing to GDP growth in Egypt, while the share of both labor and total factor productivity in GDP growth rate has been fluctuating over time. Intellectual property protection, efficiency of legal framework in settling disputes, strength of investor protection, and other factors exhibited a strong positive relationship with output gap in Egypt over the period (2010-2014).

Available Versions of this Item

  • Estimating Egypt’s Potential Output: A Production Function Approach. (deposited 31 May 2016 10:23) [Currently Displayed]
UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.