Economic Transformation – Using Labor Where It Is More Productive
November 2024 2024-12-11 15:30Authors
Mazen Mohamed
Fatma El Ashmawy
Sara Alnashar
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Economic Transformation – Using Labor Where It Is More Productive
Abstract
| This chapter investigates Egypt’s economic transformation from 1960 to 2022. Using the de Vries et al. (2015) methodology, the findings reveal that Egypt’s productivity growth have been primarily within-sector, while labor reallocation has contributed insignificantly to productivity growth, with negative dynamic reallocation effect since the 1990s. Contributing factors include inefficient macroeconomic policies, human capital, business environment challenges, weak institutions, and political economy dynamics. These factors have undermined Egypt’s global competitiveness, leaving the economy dependent on low-value-added exports and limiting diversification. The analysis concludes by offering recommendations for addressing these challenges and promoting a more robust, inclusive economic transformation that can improve Egypt’s long-term growth and competitiveness. |
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