Appendix 1

Egypt's Savings Ratio
Year
Y
S
Year
Y
S
1974/75
12,583
306
1981/82
21,709
3,319
1975/76
13,827
1,632
1982/83
23,408
4,984
1976/77
15,195
2,005
1983/84
25,285
4,960
1977/78
16,926
2,074
1984/85
25,445
3,948
1978/79
18,121
2,269
1985/86
25,689
2,842
1979/80
19,203
2,364
1986/87
26,292
1,945
1980/81
20,931
3,002

Y = Egypt's Gross National Product (GNP)

S = Egypt's National Savings

Figures are in million Egyptian pounds at 1981/82 constant prices

Source: Data were obtained directly from Egypt's Ministry of Planning in Cairo.

Based on the above figures, the following savings function was derived through regression analysis:

Savings ratio = 19.9%

The regression equation statistics, based on 13 observations, with National Savings as the dependent variable, were:
VariableCoefficient Std. Errort 2-tail sig.
Constant-1313.1229 1211.3773-1.0839916 0.302
GNP0.1992359 0.05805893.4316136 0.006

R-squared = .517; R-squared (adj.) = .473; Durbin-Watson stat. = 0.667; log likelihood = -106.63; F = 11.77597