Toward Sustainable Growth in Egypt, UK, and USA Economies

doi:10.7176/jesd/13-2-09

Abstract

In this paper we determine the main sources and forecast of sustainable economic growth in USA, and UK as large open advanced modern mixed economies, and in Egypt as emerging modern mixed economy. By analysis (SDGs) and Cobb-Douglas Production Function (C-DPF) with its developed by Solow growth model.The expected growth rate of GDP at the end of 2021 in USA, UK, and Egypt are more than 10%, 7.25%, and 6% in three countries respectively. The main sources of sustainable growth are capital accumulation through investments, technological changes, good business environment, growth in the potential labor force, and/or (natural resources, human and physical capital, and technological factors), and institutional factors (such as finance and banking system, education system, healthcare, infrastructure, and political stability). These sources should be concentrated on its by policy makers in all three countries to achieve sustainable growth forever. Keywords: Sustainable Growth – SDGs – C-DPF and Solow model. DOI: 10.7176/JESD/13-2-09 Publication date: January 31 st 2022

Highlights

1- Introduction: Egypt in 2021 is one of the highest growth rate among developing countries through last five years ago, it started economic development after July 1952 revolution by depending on commend economy system until 1973, after these years, Egypt transformed to modern mixed economic system, that was leaded to improve economic performance sharply, because the growth of GDP in 1975-1986 averaged over 9% a year in real terms, even in the face of an annual population growth rate of 2.8% between 1976 and 1986, and real per capita incomes increased at an average of 6% a year1
Until 2010, Egyptian economy suffered from many problems, which reflected in weakness in several indicators and variables of macroeconomics, such as, low employment rate, high inflation rate, increasing budget deficit, external imbalances, with increase poverty and great share of informal sector in GDP
Increase in personal consumption expenditures (PCE), non-residential fixed investment, federal government spending, residential fixed investment, and state and local government spending were partly offset by decreases in private inventory and exports2

Summary

Introduction

Egypt in 2021 is one of the highest growth rate among developing countries through last five years ago, it started economic development after July 1952 revolution by depending on commend economy system until 1973, after these years, Egypt transformed to modern mixed economic system (in which market take part government in leading economic system), that was leaded to improve economic performance sharply, because the growth of GDP in 1975-1986 averaged over 9% a year in real terms, even in the face of an annual population growth rate of 2.8% between 1976 and 1986, and real per capita incomes increased at an average of 6% a year1.From 1987 to 2014, Egypt started with a debt crisis of 1987, and found itself in a debt trap. That is asserted on promoting strong, sustainable, balanced and inclusive growth is a priority for G20 governments, including the United Kingdom’s, reflecting the need to drive improvements in labor and resource productivity through more and better investments in innovation5.

Results

Conclusion