Unlocking Egypt's Economic Potential: Insights from the Global Economic Diversification Index (GEDI) and Possible Pathways

Sahar Mohamed Aboud ()
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Sahar Mohamed Aboud: Institute of National Planning

Chapter Chapter 7 in Proceedings of the Global Conference on Economic Diversification 2024, 2026, pp 149-169 from Springer

Abstract: Abstract To break away from the middle income trap The Egyptian economy needs to foster its path towards diversification to high productivity activities. Building upon the accumulated reliable data-driven policy instruments, particularly Global Economic Diversification Index for the period 2000–2022, this study aims to examine the performance of economic diversification for the Egyptian economy. The analysis demonstrates a robust and significant correlation between the GEDI and ECI results, both on a global scale and within Egypt. This consistency underscores the common goal among developing nations to achieve economic diversification, thereby enhancing complexity. However, the study also reveals that Egypt remains a low-diversified, low-complexity economy, highlighting the challenges it faces in escaping the middle-income trap due to difficulties in advancing towards high-productivity sectors. To foster economic diversification and enhance complexity, Egypt should implement a sustained and clear strategy supported by a flexible framework for economic diversification and structural transformation. This strategy should be complemented by industrial policies, incentives for private investment in R&D, and ongoing reforms to improve the business environment. To sum up, accumulation of comprehensive polices and supporting framework to Improving drivers of both total and sector productivity is key.

Keywords: Structural change; Economic development; Diversification; Economic complexity (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-95-2022-0_7

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DOI: 10.1007/978-981-95-2022-0_7

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