The Effects of Migration and Remittances on Economic Development in Egypt
Keywords:Migration and remittances, Economic development, Egypt, Poverty
This piece delves at how migration and remittances have affected economic growth in
Egypt, a large nation in North Africa and the Middle East with a rich history of both.
According to the World Bank figures used in this article, in 2020 Egypt received an
anticipated $29.6 billion in remittances, which is equal to 8% of its GDP. The article also
summarises the research on how migration and remittances have helped or hurt the
economies of countries of origin in terms of poverty reduction, human capital
development, and overall economic growth. To further evaluate the impact of PR on FDI,
IT, and the article itself, the authors employ a vector autoregression (VAR) model. A
positive and substantial effect of PR on PR is found, as is a negative and significant effect
of PR on FDI, but no significant effect of PR on IT is found. The essay concludes that
policymakers in Egypt should take a balanced and context-specific approach to
maximising the advantages and minimising the costs of migration and remittances due to
their complicated and varied effects on economic growth.