الآثار الإقتصادية للهجرة الخارجية للعمالة فى مصر

The Economic Impacts for the Labor Emigration in Egypt

Soad Sayed Mahmoud and Emad Shehata

MPRA Paper from University Library of Munich, Germany

Abstract: Egyptian labor emigration is considered one of the changes, that led to the structural distortions in the domestic labor market in Egypt, the countries gulf were the main source of the Egyptian labor temporal emigration, while the USA, Canada, and Australia were the main source of the permanent emigration from Egypt. After the first gulf war, the Egyptian economy faced labor immigration. The study research problem, handled nature of the economic changes as a result of Egyptian labor emigration, so objective of the study is to explore the economic impacts for labor emigration, and the most variables affecting this emigration, and the trends of the workers’ remittances. The study used the regression analysis, i.e., simple regression, and simultaneous equations system by three stages least squares (3SLS), through the period (1990-2006), and took with considerations autocorrelation, heteroscedasticity, non normality, and multicollinearity problems. The results indicated that there was a statistical significance decreasing in the permanent emigration, and there was a statistical significance increasing in the temporal emigration. Saudi Arabia captured the most Egyptian emigration, also, Kuwait, and Jordan. In general the whole emigration increased significantly during the period of the study. Workers’ remittances from USA captured more than the third part during the period (2000-2006). Emigration model was estimated by (3SLS) with Newey-West’s generalized method of moments (GMM). The results indicated that, increasing workers’ remittances and unemployed led to increase emigration, while increasing the demand for domestic labor and the annual labor wage have an effect for decreasing emigration. Finally, some recommendation were mentioned, for encouragement emigration, i.e., activating and establishment the international relationships between Egypt and the neighboring countries, a diplomatic effort for emigration stabilization abroad, the search of new labor market in other countries. Also some recommendation with respect to immigration, i.e., simplification investment procedures, encouragement the industries that have an intensive human labor, and activating the training role that agree with the labor market requirements, for developing the human resources.

Keywords: Labor; Emigration; 3SLS (search for similar items in EconPapers)
JEL-codes: F22 (search for similar items in EconPapers)
Date: 2009-04, Revised 2009-04
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Published in Journal of contemporary Egypt, the Egyptian Society of Political Economy, Statistics and legislation 494 (2009): pp. 505-537

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43418

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