Regional analysis of domestic integration in Egypt: an interregional CGE approach

Faculty Commerce Year: 2016
Type of Publication: ZU Hosted Pages:
Authors:
Journal: Journal of Economic Structures Springer open Volume:
Keywords : Regional analysis , domestic integration , Egypt: , interregional    
Abstract:
There is a growing need for economic and socio-economic models for helping to improve road management. This paper provides an attempt to meet this requirement in a developing country. We use a fully operational ICGE model implemented for the Egyptian economy. The existing, commonly used policy tools to address issues related to the economic impacts of transportation infrastructure policies do not depict well critical channels through which exogenous and transportation policy shocks are transmitted to the various dimensions of regional economic structures. This paper looks at the Egyptian case. It shows that, given different policy options, decision makers face nontrivial choices, as different projects perform differently in different dimensions, usually presenting outcomes with different hierarchies related to multidimensional policy goals. The study develops an interregional computable general equilibrium model to help assess the ex-ante impact of transportation infrastructure policies in Egypt. The model is integrated with a GIS network. It illustrates the analytical capabilities of the model by looking at the domestic integration of the country. Improvements of transportation costs among Egyptian governorates and of their links to the broader world economy are considered in stylized simulations. The results provide quantitative and qualitative insights (general equilibrium effects) into trade-offs commonly faced by policy makers when dealing with transportation infrastructure projects in a spatial context. In the case of Egypt, there seems to be an important trade-off between efficiency and regional equity: projects that produce potential higher impacts on national GDP also tend to contribute more to regional concentration.
   
     
 
       

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  • Dina Nabil Mohammed Ahmed Shahwani, "Regional Analysis of Domestic Integration in Egypt", University of Sao Paulo Brazil, 2015 More
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