Determinants of Regional Income Disparities in Egypt: An Empirical Evidence

Elshahawany, Dina Nabil Mohamed Ahmed; Zaitoun, Noha Mahmoud Ashraf Mohamed Ali

doi:10.21608/sjsc.2024.306759.1483

Determinants of Regional Income Disparities in Egypt: An Empirical Evidence

نوع المستند : المقالة الأصلية

المؤلفون

¹ كلية التجارة، جامعة الزقازيق

² كلية التجارة جامعة الزقازيق

10.21608/sjsc.2024.306759.1483

المستخلص

.Egypt, about 70% of population live in regions where per capita Gross Domestic Product is below the national average. Moreover, the growth of per capita GDP shows high level of disparities between regions. Where economic growth in some governorates is around 9%, in other governorates does not exceed 1%. The problem is more evident when we look at the differences between regions using other economic and social indicators. This gives a conclusion that people in Egypt are live under substantial dissimilarity circumstances. This paper attempts to address the regional disparities problem in Egypt and its determinants. The most commonly disparities measures have been used to assess the severity of the problem through 2012-2021 period using per capita GDP of Egypt’s 27 governorates. Then, the main determinants of regional income disparities have defined through investigating the factors that affecting regional per capita through a panel data framework using the fixed effect model (FEM). Results show that, government expenditures, public investments, labor productivity, and employment to population rate have significant positive impact on regional per capita GDP, while urbanization and illiteracy rates are insignificant so based on the model used, they are not determinants of regional disparities.

JEL classification: R11, R58, O47

الكلمات الرئيسية