The Relationship Between Agricultural Capital Goods and Agricultural Economic Growth | ||
| Assiut Journal of Agricultural Sciences | ||
| Volume 56, Issue 3, July 2025, Pages 344-357 PDF (680.36 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ajas.2025.385092.1485 | ||
| Authors | ||
| Amany E. El-Dabaa* 1; Mohamed A.A. Nahoul2; Dalia H. El-Showeikh2; Nourhan Y. Ali2 | ||
| 1Higher Institute of Agricultural Cooperation and Extension, Assiut, Egypt. | ||
| 2Department of Agricultural Economics, Faculty of Agriculture, Assiut University, Assiut, Egypt. | ||
| Abstract | ||
| Economic growth is a goal that countries strive to achieve. The research problem is represented by the weak efficiency of the production unit in the agricultural sector and its inability to achieve sustainable development due to its reliance on traditional methods rather than technology in the production process. The research aims to evaluate the impact of agricultural capital goods on the economic growth of the agricultural sector, where the distributed time-lag autoregressive methodology is applied to estimate the parameters of the long-term equilibrium, along with an error correction model to estimate the short-term dynamics of the parameters simultaneously. The research results indicate that capital goods have a significant, positive impact on economic growth in the long run. A 1% increase in agricultural machinery inventories, the real value of agricultural machinery imports, and agricultural investment increases the value of agricultural GDP by 1.08%, 0.25%, and 0.02%, respectively. In the short run, agricultural machinery and equipment inventories, and the real value of agricultural machinery and equipment imports for the same year, the previous year, and the two previous years, account for approximately 98% of the changes in the real value of agricultural GDP. The model also tends toward achieving long-term equilibrium, as it is evident that approximately 74% of short-term errors are automatically corrected to reach long-term equilibrium, with the recovery period taking a year and a half. The research recommends focusing on capital goods, as they lead to increased agricultural GDP and long-term economic growth through increased investment in modern technology. | ||
| Keywords | ||
| Agricultural capital goods; Autoregressive distributed lag model; Economic growth | ||
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