Trade liberalisation, government expenditure and economic growth in Egypt

This article investigates the combined effects of growth in government expe nditure, exports, investment and labour supply on economic growth in Egypt between 1955 and 1996. Using cointegration and error correction models, the article finds a long-run relationship between the variables, but less evid ence of one in the short run. To account for the important policy reforms i n 1974 and 1991, dummy variable are added which show the reforms knee signi ficantly affected rite relationship between government expenditure and grow th br a positive direction. but have had a negative effect on exports mid g rowth. This conclusion is further supported by the time-varying coefficient analysis.