Remittances, exports and ODA: their impact on economic growth in Egypt

Abstract

Over the last 40 years, remittances sent by migrants to Egypt have grown significantly. Egypt is now one of the world’s top recipients of remittances and the leading receiver in the Middle East. These remittances are a key source of foreign currency for the country. This research aims to understand how remittances affect Egypt’s economic growth. We used a statistical method employing Autoregressive Distributed Lag (ARDL) model to test if there’s a long-term relationship between gross domestic product (GDP), exports, remittances and official development assistance (ODA). The results show that all three factors—exports, remittances and ODA—are linked to GDP and influence it over time. This suggests that these factors play a crucial role in Egypt’s economic development.