External shocks, exchange rate adjustments, and income distribution in Egypt

This study examines the complex dynamics of the Egyptian economy in response to external shocks and currency devaluation. Applying a SAM-based CGE model, the research focuses on the economic linkages between production sectors, households, government and the rest of the world, on resource competitio...

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Main Authors: Raouf, Mariam, Ghaly, Sherine Boshra, Wiebelt, Manfred, Elhamalawy, Fatma
Format: Journal Article
Language:Inglés
Published: 2024
Subjects:
Online Access:https://hdl.handle.net/10568/159849
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author Raouf, Mariam
Ghaly, Sherine Boshra
Wiebelt, Manfred
Elhamalawy, Fatma
author_browse Elhamalawy, Fatma
Ghaly, Sherine Boshra
Raouf, Mariam
Wiebelt, Manfred
author_facet Raouf, Mariam
Ghaly, Sherine Boshra
Wiebelt, Manfred
Elhamalawy, Fatma
author_sort Raouf, Mariam
collection Repository of Agricultural Research Outputs (CGSpace)
description This study examines the complex dynamics of the Egyptian economy in response to external shocks and currency devaluation. Applying a SAM-based CGE model, the research focuses on the economic linkages between production sectors, households, government and the rest of the world, on resource competition on markets for production factors and goods, and on macroeconomic constraints in the government budget, savings and investment, and foreign exchange revenues. Key findings reveal the substantial impact of differential domestic inflation (45%) and the challenges posed by limited foreign exchange inflows (32%) and eroded export competitiveness (19%). External shocks, including the COVID-19 pandemic and geopolitical events, yield nuanced impacts on GDP, employment, household consumption, and inequality. Sectoral analyses highlight varied effects on export-oriented and non-tradable industries. As Egypt grapples with global challenges, the study emphasizes the need for targeted policies balancing export competitiveness, foreign savings, and domestic stability. The findings contribute practical insights for policymakers navigating the complexities of a dynamic global economy.
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spelling CGSpace1598492025-10-26T12:52:09Z External shocks, exchange rate adjustments, and income distribution in Egypt Raouf, Mariam Ghaly, Sherine Boshra Wiebelt, Manfred Elhamalawy, Fatma computable general equilibrium models economic shock exchange rate income distribution macroeconomics This study examines the complex dynamics of the Egyptian economy in response to external shocks and currency devaluation. Applying a SAM-based CGE model, the research focuses on the economic linkages between production sectors, households, government and the rest of the world, on resource competition on markets for production factors and goods, and on macroeconomic constraints in the government budget, savings and investment, and foreign exchange revenues. Key findings reveal the substantial impact of differential domestic inflation (45%) and the challenges posed by limited foreign exchange inflows (32%) and eroded export competitiveness (19%). External shocks, including the COVID-19 pandemic and geopolitical events, yield nuanced impacts on GDP, employment, household consumption, and inequality. Sectoral analyses highlight varied effects on export-oriented and non-tradable industries. As Egypt grapples with global challenges, the study emphasizes the need for targeted policies balancing export competitiveness, foreign savings, and domestic stability. The findings contribute practical insights for policymakers navigating the complexities of a dynamic global economy. 2024-09-01 2024-11-15T18:52:18Z 2024-11-15T18:52:18Z Journal Article https://hdl.handle.net/10568/159849 en Open Access Raouf, Mariam; Ghaly, Sherine Boshra; Wiebelt, Manfred; and Elhamalawy, Fatma. 2024. External shocks, exchange rate adjustments, and income distribution in Egypt. Egyptian Review of Development and Planning 32(3): 106-140. https://doi.org/10.21608/inp.2024.276729.1082
spellingShingle computable general equilibrium models
economic shock
exchange rate
income distribution
macroeconomics
Raouf, Mariam
Ghaly, Sherine Boshra
Wiebelt, Manfred
Elhamalawy, Fatma
External shocks, exchange rate adjustments, and income distribution in Egypt
title External shocks, exchange rate adjustments, and income distribution in Egypt
title_full External shocks, exchange rate adjustments, and income distribution in Egypt
title_fullStr External shocks, exchange rate adjustments, and income distribution in Egypt
title_full_unstemmed External shocks, exchange rate adjustments, and income distribution in Egypt
title_short External shocks, exchange rate adjustments, and income distribution in Egypt
title_sort external shocks exchange rate adjustments and income distribution in egypt
topic computable general equilibrium models
economic shock
exchange rate
income distribution
macroeconomics
url https://hdl.handle.net/10568/159849
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