Working Paper- Construction Supply Chain, Inter-Sectoral Linkages and Contribution to Economic Growth: The Case of Egypt

Source: The Egyptian Center For Economic Studies
Author(s): Mona Esam, Maye Ehab

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The construction sector is considered a key sector in the Egyptian economy and a main contributor to economic development, specifically in total employment. This paper examines the construction sector intersectoral linkages and contribution to economic growth. The purpose is to identify the effect of a boom in the construction sector (due to government stimulus packages or heightened construction activity for instance) on other sectors as well as on economic growth in Egypt. Hence, the paper first identifies and analyzes the supply chain of the construction sector in Egypt, with a highlight on the size of SMEs and subcontracting in the sector. It then studies the intersectoral linkages of the construction sector and their implications on the Egyptian economy. This is conducted through an analysis of Egypt’s input-output (I/O) tables for the years 2007/2008, 2008/2009 and 2010/2011; in addition to time series analysis of quarterly data for the period from 2001/2002 Q1 till 2014/2015 Q2…

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