Is the Export-Led-Growth Hypothesis, Valid for Egypt? A Time Series Approach

This research addresses important empirical questions regarding the relationship between Egyptian exports and Egyptian economic growth by extending the Dirtsakis’s model (Dritsakis, 2004, p. 1834) with the addition of the labor force into the model. The hypothesis to be tested is, does export expansion cause economic growth in Egypt? In other words, is the Export-Led-Growth (ELG) hypothesis valid for Egypt? This study analyzes the issue of ELG hypothesis in Egypt using the VAR analysis, quarterly time-series data over the period 1991-2009. The results tend to favor the effectiveness and validity of the ELG hypothesis for Egypt