Abstract: The rapid liberalization of Egypt’s financial sector demands maintaining the safety and stability of the banking system through prudential regulation. The justification for prudential regulation stems from the shortcomings of laissez-faire banking. Prudential policy generally seeks to prevent systemic risk, minimize financial instability, and ensure that financial intermediaries are adequately capitalized and professionally managed.Revolutionary […]
Abstract: Egypt’s efforts to liberalize its financial sector in the l990s have been impressive. Egyptian authorities have been successful in reversing more than three decades of interventionist policies. The fundamental building blocks of this liberalization process now seem solid. They include a reduced fiscal deficit, and the unification and freeing of exchange rates, interest rates, […]
Abstract: Financial markets can influence economic growth by improving productivity of capital, channeling investment to firms and increasing savings for greater capital accumulation. Because of asymmetric information, however, prudential regulation is necessary to ensure the stability of financial markets, particularly during financial liberalization. At times of liberalization, interest rate controls may be a potentially stabilizing […]
Abstract: This paper is concerned with gas pricing policies and begins by describing the unique characteristics of gas that influence the market and pricing. In Egypt, the upstream and downstream pricing of gas is based on the institutional system which governs the hydrocarbon industry and the multiplicity of objectives the government tries to achieve.The policy […]
Abstract: This paper explores the economic impact of a free trade agreement (FTA) between Egypt and the United States, assuming that Egypt implements both the recently agreed Arab League FTA and a partnership agreement with the European Union. An Egypt-US agreement would improve Egypt’s economic welfare. Gains would be maximized if the agreement were to […]
Abstract: This paper evaluates, from a US perspective, two distinct models for a US-Egypt free trade agreement (FTA). One model is the traditional GATT FTA exemplified by the US-Israel and Euro-Med agreements. The US-Israeli FTA was the first signed by the United States, and its provisions were relatively limited. The other model, as exemplified by […]
Abstract: This paper explores whether developing countries are better off relying on competition, incentive regulation and private ownership rather than state ownership, exclusive state monopoly and administered regulation of utilities. It evaluates the welfare implications of these two scenarios by estimating implications of reforming Telecom Egypt on the welfare of consumers, workers, government and buyers. […]
Abstract: This paper analyzes the Egyptian General Sales Tax (GST) which has registered a high buoyancy over the last six years, while income taxes on individuals are showing declining buoyancy despite progressive rates. This paper recommends replacing the GST with a value-added tax (VAT) to increase efficiency and revenue productivity. The GST must be reformed […]
Abstract: This paper examines an Egypt-US FTA from Egyptian perspective. It explores the choices facing negotiators and the probable implications of the most likely FTA scenario for Egypt. It considers three broad choices: a US-Israeli-style FTA focusing on the elimination of tariffs and restrictions; a broader agreement like the North- American Free Trade Agreement (NAFTA) […]
Abstract: “The Consumer Price Index (CPI)1 is an instrument designed to measure changes over time in the prices paid by households for goods and services which are customarily purchased for consumption2. Its principal objective is to reflect only pure price movement3”. That is to say, price changes due to quality differences, technological innovations, and different […]