Impact of liberalizing the exchange rate on Egyptian agricultural income

Document Type : Original Article

Authors

Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University

Abstract

The importance of the agricultural sector is due to its contribution to the gross domestic product, especially in light of the local and international changes; the most important change was the liberalization of the exchange rate. The research aims to study the impact of the exchange rate decision on the net income of the Egyptian agricultural sector from the old and new lands. And by conducting an independent T-test between the two averages of the two periods, where the test value amounted to about -8.639. This indicates that there is a significant difference at the level of 1% between the two averages of the two periods, as it is shown that the average of real net agricultural income increased in the second period as a result of liberalizing the exchange rate compared to the first period at an increased rate representing About 150.6%, it reflects the positive impact of the exchange rate liberalization on the real net agricultural income from the old lands. While the value of the T-test independent between the averages of the two periods was -1.279, which indicates that there is a non-significant difference between the averages of the two periods, this reflects the lack of effect of the exchange rate liberalization on the real net agricultural income in the new lands. Conducting an independent T-test between the averages of the two periods, where the test value reached 3.905, which indicates that there is a significant difference at the level of 1% between the averages of the two periods, as it is shown that the average net income of real animal production decreased in the second period as a result of the liberalization of the exchange rate compared to the first period at a rate of decrease representing About 24.3%, which reflects the negative impact of the exchange rate liberalization on the net income of real animal production in the old lands. Recommend search: - Working to improve the total Egyptian national agricultural net income by paying attention to plant, animal, and fish activities. - Attempting to take actions and procedures that contribute to raising the subsidization provided to the agricultural sector to face local and international changes to correspond with the status of the agricultural sector. Decreasing the net agricultural income, especially plant production in the old lands may be due to the encroachment on agricultural lands, and therefore, the encroachment on agricultural lands must be dealt with firmly. Working hard to exploit the new lands to increase both animal and fish production.

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