Four years after the historic uprising of the Egyptians in January 2011, we aim to understand whether the Egyptian revolution has had a different impact on different sectoral investments in the economy. Using data over the 2002Q1–2014Q2 period and a seemingly unrelated regression equations (SURE) approach that allows for contemporaneous correlation across sectors of the economy, we find that the revolution's effect on sectoral investments has been adverse, on average, but heterogeneous across sectors. Results hold under a number of robustness checks.
It is worth mentioning that throughout the article we only focus on 16 sectors of the Egyptian economy since private sector investments are only available in these 16 sectors, although data for total and public investments for 20 sectors is available from the Egyptian Ministry of Economic Development.
Other robustness checks (not included for space considerations) include adding and dropping variables such as global commodity prices and foreign reserves, as well as experimenting with different combinations of the different definitions of money supply, the exchange rate, and inflation.