Egyptian agricultural sector inefficiently invested, private sector outperforms public investments.
Investments play a crucial role in Egypt's agricultural sector development. A study analyzed investment efficiency in the sector from 2000 to 2014. Findings show that public sector agricultural investments were inefficient, while private sector investments were efficient. Private sector investments increased more than public sector investments, contributing more to the overall GDP. Factors like real local liquidity and agricultural income positively affect agricultural investments, while real trade balance deficits negatively impact them. Increasing local liquidity and agricultural income by 1% leads to a 11.6% and 1.66% increase in agricultural investments, respectively. Conversely, a 1% increase in trade balance deficits leads to a 34.2% decrease in agricultural investments.