The relationship between Export, Import, Domestic Investment and Economic Growth in Egypt: Empirical Analysis

This paper investigates the relationship between exports, imports, domestic investment and economic growth in Egypt. In order to achieve this purpose, annual data for the periods between 1965 and 2015 was tested by using Johansen co-integration analysis of Vector Auto-regression and the Granger-Causality tests. According to the result of the co-integration analysis, it was determined that there is no relationship between the four variables. The empirical results indicate that exports, imports and domestic investment have no effect on economic growth in Egypt. However, the result of causality test asserts that imports and domestic investment are the source of economic growth in Egypt