The Social Sciences

Year: 2019
Volume: 14
Issue: 6
Page No. 255 - 265

Fiscal Multiplier in Egypt: A SVAR Approach

Authors : Yousra Nafie and Baher Mohamed Atlam

Abstract: In this study, we empirically estimate the fiscal multiplier in Egypt using a Structural Vector Autoregressive Model (SVAR) with quarterly data for the period 1990-2015. The estimation results show that the fiscal multiplier was positive and >1 during the first year, then turned negative for the subsequent years. Our results suggest that the low fiscal multiplier is an indication of the weak impact of government spending on real GDP during the period of the study. We argue in the study that low value of the fiscal multiplier is due to the rising shares of subsidies and debt services cost in government spending.

How to cite this article:

Yousra Nafie and Baher Mohamed Atlam, 2019. Fiscal Multiplier in Egypt: A SVAR Approach. The Social Sciences, 14: 255-265.

Design and power by Medwell Web Development Team. © Medwell Publishing 2022 All Rights Reserved