Can the Nile Generate Output, Income and Employment in Egypt? A Mixed Multiplier Analysis


Nile water availability is one of the major constraints for agricultural development in Egypt. This study conducts a mixed multiplier analysis, under water and land constraints, to identify the seasonal agricultural activities with high output and income multipliers. It uses a 2008/09 SAM for Egypt with detailed representation for Nile-related production factors employed by agricultural activities across irrigation seasons. The results demonstrate the significance of addressing Nile water constraints not only for agriculture, but also for the overall economy. Policies that enhance water productivity, particularly in winter season, generate outstanding increases in output, income, and employment through sizable multiplier effects.