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The effect of remittances on Egypt's economic growth

This paper tests the relationship between remittances along with other macroeconomic variables such as; investment, FDI and openness to trade and GDP per capita. In order to test this relationship, this study has depended on Multiple Linear Regression Model in which time series analysis of the annua...

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Main Author: Naga, Samar Amr
Format: Thesis
Published: AUC Knowledge Fountain 2015
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access_status_str Open Access
author Naga, Samar Amr
author_browse Naga, Samar Amr
author_facet Naga, Samar Amr
author_sort Naga, Samar Amr
collection Thesis
dc_rights_str_mv The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.
description This paper tests the relationship between remittances along with other macroeconomic variables such as; investment, FDI and openness to trade and GDP per capita. In order to test this relationship, this study has depended on Multiple Linear Regression Model in which time series analysis of the annual data about the variables from 1977 until 2013 is used. The results extracted from the model have shown that there is a strong positive and significant relationship between investment and GDP per capita. Besides, the results have showed that there is a strong positive and significant relationship between openness to trade and GDP per capita. However, the results have showed that there is a negative significant relationship between FDI and GDP per capita. Moreover, the findings have revealed that there is insignificant positive relationship between remittances and GDP per capita. Given the insignificant effect between remittances and economic growth, we have decided in this paper to use the data from the empirical survey done by the (IOM) in collaboration with the Ministry of Manpower and Migration on 200 remittance- receiving households for two main reasons. One of reasons is to identify the cause behind having this insignificant effect between the two pre-stated variables. The second reason is to demonstrate to the Government the importance of getting benefit of these international surveys to know how the remittances are used in the meantime from households’ perspective as well to demonstrate the variables that households perceive as critical and significant variables that could affect their decision to invest in the country. Finally, in this paper, we have showed case studies of how other countries have succeeded to encourage its migrants to transfer more money to be invested in productive projects. The main aim of showing these case studies is to give the Egyptian government a guideline of what are the policies and procedures it could follow to overcome the obstacles and the variables seen by the households as critical variables hindering their investment in Egypt.
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institution American University in Cairo (Egypt)
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license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from AUC Knowledge Fountain — bepress
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spelling oai:fount.aucegypt.edu:etds-1142 The effect of remittances on Egypt's economic growth Naga, Samar Amr This paper tests the relationship between remittances along with other macroeconomic variables such as; investment, FDI and openness to trade and GDP per capita. In order to test this relationship, this study has depended on Multiple Linear Regression Model in which time series analysis of the annual data about the variables from 1977 until 2013 is used. The results extracted from the model have shown that there is a strong positive and significant relationship between investment and GDP per capita. Besides, the results have showed that there is a strong positive and significant relationship between openness to trade and GDP per capita. However, the results have showed that there is a negative significant relationship between FDI and GDP per capita. Moreover, the findings have revealed that there is insignificant positive relationship between remittances and GDP per capita. Given the insignificant effect between remittances and economic growth, we have decided in this paper to use the data from the empirical survey done by the (IOM) in collaboration with the Ministry of Manpower and Migration on 200 remittance- receiving households for two main reasons. One of reasons is to identify the cause behind having this insignificant effect between the two pre-stated variables. The second reason is to demonstrate to the Government the importance of getting benefit of these international surveys to know how the remittances are used in the meantime from households’ perspective as well to demonstrate the variables that households perceive as critical and significant variables that could affect their decision to invest in the country. Finally, in this paper, we have showed case studies of how other countries have succeeded to encourage its migrants to transfer more money to be invested in productive projects. The main aim of showing these case studies is to give the Egyptian government a guideline of what are the policies and procedures it could follow to overcome the obstacles and the variables seen by the households as critical variables hindering their investment in Egypt. 2015-06-01T07:00:00Z thesis application/pdf https://fount.aucegypt.edu/etds/143 https://fount.aucegypt.edu/context/etds/article/1142/viewcontent/fINAL_20Modified_20Thesis_20first_20proposal_20modified_20acknoweldgements_20_281_29.pdf The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy. Theses and Dissertations AUC Knowledge Fountain Remittances and Egypt Economic growth NA NA
spellingShingle Remittances and Egypt Economic growth
NA
NA
Naga, Samar Amr
The effect of remittances on Egypt's economic growth
title The effect of remittances on Egypt's economic growth
title_full The effect of remittances on Egypt's economic growth
title_fullStr The effect of remittances on Egypt's economic growth
title_full_unstemmed The effect of remittances on Egypt's economic growth
title_short The effect of remittances on Egypt's economic growth
title_sort effect of remittances on egypt s economic growth
topic Remittances and Egypt Economic growth
NA
NA
url https://fount.aucegypt.edu/etds/143
https://fount.aucegypt.edu/context/etds/article/1142/viewcontent/fINAL_20Modified_20Thesis_20first_20proposal_20modified_20acknoweldgements_20_281_29.pdf
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