Working Papers

Agricultural Productivity Growth, Employment and Poverty in Egypt

Publication Number: ECESWP129-E&A

February, 2008

Author : Hanaa Kheir-El-Din and Heba El-Laithy

Type : Working Papers

The purpose of this paper is to investigate the importance of agricultural productivity growth for generating employment and alleviating poverty in Egypt. Specifically, it attempts to answer the following questions: How important is agriculture for income and employment generation in rural Egypt? What is the relationship between agricultural productivity and poverty reduction? What are the main linkages between agricultural and non-agricultural activities in rural areas? And finally, what needs to be done to increase the contribution of agriculture to poverty alleviation? To answer these questions, the paper draws on the Agricultural Farm Income Survey 2003/2004 (AFIS) database constructed from a survey conducted by the Egyptian Ministry of Agriculture and Land Reclamation (MALR) and on the latest Household Income and Expenditure Consumption Survey 2004/2005 compiled by the Central Agency of Public Mobilization and Statistics (CAPMAS). To conclude, the paper points out the importance of formulating and implementing a comprehensive strategy that strengthens farm/non-farm linkages; such a strategy is more likely to yield better results in terms of employment, income generation and hence poverty alleviation.