Obstacles of Agricultural Foreign Investment in Land Reclamation “Case Study”
Abstract: ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• Egyptian Journal of Agricultural Economics. Egyptian Association of Agricultural Economics. Vol.(26), No.(3), Cairo, Egypt, September 2016.
ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
Egypt suffers from a lack of mechanisms for achieving development capital, and because of the low national income, and the weakness of the savings rate, making it looking for different ways to bring these funds, which including foreign direct investment. In fact, it indicates that foreign direct investment can contribute to the operation amount of labor could increase its existence value of GDP and exports. It can also contribute to the exploitation of natural resources, including owned advanced technology. But reading carefully the data of foreign direct investment flows and distributed to the National Savin sectors we find that the relative share of agricultural investment marginally increased significantly compared to the rest of the sectors has reached about 177.5 million pounds, accounting for about 0.6% of the total foreign investment, estimated at 29.8 billion pounds in 2014/2015 . Which indicates Dialh relative share of the agricultural sector from foreign investment flows, and not commensurate with the expected performance of this sector in achieving sustainable development .mma pays to wonder: Are the agricultural sector lacks the elements to attract foreign investment compared to investment in other sectors?
The research aimed to identifying impediments to foreign investment and, in particular agricultural land reclamation sector, and then adopted research on the case study method. The research concluded that several of the most important results: The Geographic distribution of foreign investment in the Agricultural Land Reclamation at the level of governorates during the period Sector (95/1996-2014/2015) showed that the Cairo governorate come in first place in terms of foreign investment in land reclamation by the sector size, although being an urban province, but the average size of investment by foreign estimated at $ 114.7 million, has been attributed to being the administrative headquarters for many of the land reclamation companies. Followed by the Aswan Governorate valued at $ 10.2 million, and Giza comes in third place with an average investment estimated at $ 9.2 million, all from the El-Sharkia, El-Bohera, Ismailia and Alexandria with a total investment estimated at 5.9, 3.7,2.4, 3.1 million dollars for each of them respectively. An Econometric model showed that there is a positive relationship between the annual growth rate of gross domestic product of agricultural real and all of the direct agricultural FDI as a percentage of gross domestic product of agricultural real, agricultural labor annual growth rate, the proportion of agricultural consumption to GDP Agricultural, degree of economic openness agricultural sector in terms of increasing each of them by about 1% leads to increased growth rate of agricultural GDP by about 0.03%, 0.10%, 2.7%, 1.05% each, respectively. The total flexibility about 3.88, indicating a growing return on capacity an increase of the values of these variables a 1% growth rate of the agricultural sector increased by about 3.9%. Finally the results of the case study on agricultural phenomenon firm showed that the most important obstacles facing the investor in the field of land reclamation are: the length of the proceedings of ownership, lack of readiness of some targeted areas reclamation, lack of access to energy sources, but after the completion of Agriculture, multiplicity of Responsible there is no nets one easy for an investor to deal with it in the development of Land Reclamation, the fear of land grants, despite a call for investors and the state is willing to invest Agricultural forces contribute to the achievement of sustainable development.
Recommendation
Egypt should have a new investment map for the agricultural sector in particular defined the targeted activities and projects to be implemented and expected rates of its growth, and accelerate all adjustments for Consolidated Investment Act and its implementing regulations and enact appropriate legislation that will facilitate investor access to investment in time and eliminate the cost of waiting and that may lead to the departure of the investor.
ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
URL
Publication year 2016
Availability location مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)
Availability number
Organization Name
City الجيزة
serial title المجلة المصرية للاقتصاد الزراعى
Author(s) from ARC
Publication Type Journal
↑