An Analytical Study of the Impacts of the Investment Policy on the Egyptian Agriculture in the Period Between 1990-2015

The agricultural development is based on many foundations. One of the most important of these foundations is the capital accumulation in the agricultural sector, though the targeted annual investment can develop this sector vertically and horizontally. Therefore, it is necessary to study the investment policy and its impacts on the agricultural policy, especially during the world financial and economic crisis that has impacted the Egyptian economy in general, and the agricultural sector in particular. The relative importance of the agricultural investment as a percentage of the total national investment declined from about 5.02% in 2010/2011 to 4.05% in 2011/2012, which was the year before the world financial crisis. This declining continued and reached 3.67% in 2013/2014, the first year of the world financial crisis. This led in return to decline the contribution of the agricultural sector in the GDP from 13.85% in 2011/2012 to about 13.21% and 12.81% in the two years of the world financial crisis, respectively. This situation underlines the importance of this research, which aimed to analyze the investment policy in Egypt using the investment relation and the most important factors assigned to them.
The results of the investment function have shown that an increase of the national income in the current year with one million pounds led to an increase of the total investments with 0.127 million pounds, while an increase of the national income in the previous year with one million pounds led o increase the investment of this year with 2.11 million pounds. Also, the decreasing of the interest rate with one unit led to increase of the investment with 3.6 million pounds. The results of the Klein model have shown that the national consumption function is statically significant at 0.01 level, where the coefficient of determination shows that about 92% of the changes in the national consumption are due to the change of the national income in the current year and in the previous year and of the employment’ wages in the current year. While the rest of changes is due to changes of other factors not covered in the model. Results of the research its shows inceasing gross agricultural products at an annual rate statistically significant reached about 3.7% and deacreasing gross investment an annual rate statistically significant reached about 0.7% during studing period although increasing gross agricultural investment at an annual rate reached about 1.08%, 1.12% during studing of two periods and decreasing agriculral investment productivity coefficient in general during period 00/2001 – 14/2015 and decreasing profitability investor pound in the agricultural sector and decreasing investment affecientcy in the same sector did not exceed agricultural investment the value of the agricultural product through studing two periods although increasing agricultural saving average propensity to agricultural save and raising rate of covering agricultural save to agricultural investment which led to imbalance between them. This is due to agricultural savings directed to non- agricultural investments. It has also been showed that increased national income leads to increased national investment and thus increased total agricultural investment there was also an inverse relationship between the intrest rate and the increase in local agricultural investments.