An Economic Study of the Efficiency and Determinants of Agricultural Investment in Egypt in the Light of Local and Global Variables

Abstract

Agricultural investment is the lifeblood of economic and social life and the basis of building development and economic growth, where it works to provide food and drink and supplies other sectors with their needs and contributes to increase local output. The problem of the study was the small investments directed at the agricultural sector despite the importance of this sector. The main results are that the contribution of agricultural investments to the national investments reached 4.90%. The average agricultural investment amounted to about 5.69 billion pounds, the lowest amounted to about 2.75 billion pounds in 2012 alone, the highest amounted to about 7.55 billion pounds in 2004. The study of the determinants of agricultural investment showed that agricultural loans and agricultural GDP in the previous year have a positive impact on agricultural investment. It also turned out that the interest rate has a positive impact on investment and this is the opposite of logic it was also found that the exchange rate has a negative impact on investment as a result of the recent increase in the dollar and the decrease in the level of purchasing inputs from abroad. On agricultural investment as a result of reliance on the export of raw materials needed to be carried out by agro-industries for the high dollar in the recent period also shows that investment in the previous year has a positive impact on agricultural investment.