Ali, M., Sabaa, M. (2024). The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt. Egyptian Journal of Agricultural Research, 102(3), 518-541. doi: 10.21608/ejar.2024.306706.1563
Mohamed H.A. Ali; Monir F. Sabaa. "The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt". Egyptian Journal of Agricultural Research, 102, 3, 2024, 518-541. doi: 10.21608/ejar.2024.306706.1563
Ali, M., Sabaa, M. (2024). 'The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt', Egyptian Journal of Agricultural Research, 102(3), pp. 518-541. doi: 10.21608/ejar.2024.306706.1563
Ali, M., Sabaa, M. The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt. Egyptian Journal of Agricultural Research, 2024; 102(3): 518-541. doi: 10.21608/ejar.2024.306706.1563
The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt
Agricultural Economics Research Institute, Agricultural Research Center, Giza, Egypt
Abstract
The most important of characteristics of the agricultural sector in Egypt are the small size and fragmentation of holdings. These led to the decline in farm income for the majority of farms, and thus the inability to self-finance. Considering these characteristics, providing financing through borrowing for agricultural activities becomes critically important. Hence, the provision of agricultural credit is considered one of the main factors determining the advancement of agricultural production and raising the efficiency of using various agricultural resources. The research problem lies in the hypothetical argument that agricultural financing and credit policies, as well as spending on agricultural investments during the period 2000/2001 to 2021/2022, have not risen to the level of improving the performance of the agricultural sector, increasing its contribution to economic and agricultural development, and achieving food security. The research aims to prove or disprove the hypothesis by examining the impact of agricultural financing and credit policies and spending on agricultural investments in Egypt during the specified period on the performance and outputs of the agricultural sector. This will be achieved by reviewing and analyzing the indicators of these policies' implementation and their relationship and impact on the performance indicators and outputs of the agricultural sector. The research used descriptive and quantitative analysis methods to monitor, describe and analyze the variables addressed in the research in terms of the form and direction of the relationships between the variables. The simple and multiple regression analysis method was used in linear and double logarithmic forms, and current and fixed prices and lag periods were used. Considering the research results and their discussion, the research neither fully accepts nor fully rejects the hypothesis. However, it becomes clear from the results that the implementation of these policies has led to positive outcomes in many cases, while in other cases, it had no positive impact or had a negative impact in some instances.