Internal and External Economies in Egyptian Manufacturing, 1970-1997

Hélène Cottenet

No 133, Working Papers from Economic Research Forum

Abstract: Testing for the existence of internal and external economies in Egyptian manufacturing industries can help defining an active targeted industrial policy promoting long-run growth. The Caballero and Lyons (1989) methodology has been used to disentangle external from internal economies in a production function at the two-digit level. Our findings suggest that on average in both public and private manufacturing sectors, the returns to scale are constant and that the externalities are non-existent. But some industries should deserve special attention, generating positive externalities: Chemicals, Mineral and Engineering industries in the public sector; Food and Textile industries in the private sector.

Pages: 16 pages
Date: 2001-01-11, Revised 2001-01-11
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Published by The Economic Research Forum (ERF)

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