Abstract: This study assesses the efficiency and equity of the current subsidy policy in Egypt and offers options for reform. It shows that current implicit and explicit subsidies of commodities and social services have contributed to poverty alleviation. However, this has been achieved at a high cost, including increased burden on the treasury, price distortions […]
Abstract: This paper discusses alternative institutional mechanisms for reducing state intervention in economic affairs and strengthening its regulatory and oversight role. It first explores the rationale for rethinking the role of the state, by assessing the economic cost of maintaining the status quo, and analyzing the relation between reducing state intervention and economic growth. It […]
Abstract: The expansion of the European Union (EU) has prompted the development of a new approach towards deeper integration with its neighbors: the European Neighborhood Policy (ENP). Following a brief discussion of the integration strategies pursued since the mid-1990s—the Barcelona Process and the associated Euro-Mediterranean Partnership (EMP) agreements—this study describes the main elements of the […]
Abstract: The relationship between trade, employment and wages is far from settled. This paper surveys the literature dealing with this relationship with a view to identifying any stylized facts and proposing areas for future research. Beyond the link between trade, employment and wages, the paper also explores the impact of trade on heterogeneity and imperfect […]
Abstract:This paper uses a partial equilibrium model to estimate the revenue impact of the 2004 trade liberalization effort in Egypt. It further simulates the likely impact on revenue if the government were to pursue further trade liberalization. The analysis takes into account both the change in the tariff structure as well as the price elasticity […]
Abstract:The purpose of this paper is to assess the efficiency of Egypt’s bankruptcy system, identify and analyze the main reasons for its inefficiency and offer specific proposals for bankruptcy reform. Its merit lies in focusing on market exit – a fundamental feature of a well functioning market economy that has remained largely unexplored in Egypt.The […]
Abstract:This paper examines the implications of the recent EU enlargement for the Egyptian economy with regards to trade, capital inflows, and labor migration. The novelty of the study lies in that it analyzes all three dimensions of the economic relations, whereas the majority of other studies focus mainly on trade or investment, and only briefly […]
Abstract:This paper analyzes the causes and ramifications of excessive civil service employment in Egypt and makes recommendations for future reforms. It attributes the problem to past policies, which combined guaranteed government employment for all graduates of intermediate and higher education together with free schooling for all. These policies led to an excessive demand for education, […]
Abstract:This paper assesses the sustainability of public debt in Egypt in light of fiscal trends in recent years. It analyzes the key fiscal variables underlying recent growth in public debt, explores whether this debt is structural or cyclical, and simulates the debt-output trajectory based on different assumptions in key macroeconomic variables. The paper draws four […]
Abstract: There is growing consensus on the importance of investment as a determinant for economic growth. However, the relationship between public and private investment was and is still debatable in several developed and developing countries. The situation in Egypt is no exception. While some economists view public and private investments as competitive, others consider them […]