Endogenous growth models attribute long-run growth to the accumulation of capital, enhancing labor force and technological advances. The study applied the Cobb-Douglas production function offered by Romer's endogenous growth model in Egypt using data from the World Bank over the period 1990-2022. A long-term cointegration relation is confirmed between the dependent variable real GDP, which is considered as a proxy for economic growth, and the independent variables, total factor productivity as a proxy for stock of knowledge, Real Gross Capital Formation as a proxy for capital stock and years of schooling as a proxy for labor stock. Altogether, they explain 97% of variations in real GDP. The results reveal that a 1% increase in each of the stock of knowledge and technology, capital and labor leads to a 0.04, 0.44 and 0.80 increase in real GDP, respectively in Egypt over the study period.. Which coincides with the economic theory.
M. Elakkad, Rasha. (2024). An Empirical Test of Endogenous Growth Model for Egypt. المجلة العلمية للدراسات التجارية والبيئية, 15(1), 335-358. doi: 10.21608/jces.2024.349496
MLA
Rasha M. Elakkad. "An Empirical Test of Endogenous Growth Model for Egypt". المجلة العلمية للدراسات التجارية والبيئية, 15, 1, 2024, 335-358. doi: 10.21608/jces.2024.349496
HARVARD
M. Elakkad, Rasha. (2024). 'An Empirical Test of Endogenous Growth Model for Egypt', المجلة العلمية للدراسات التجارية والبيئية, 15(1), pp. 335-358. doi: 10.21608/jces.2024.349496
VANCOUVER
M. Elakkad, Rasha. An Empirical Test of Endogenous Growth Model for Egypt. المجلة العلمية للدراسات التجارية والبيئية, 2024; 15(1): 335-358. doi: 10.21608/jces.2024.349496
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