Iwasaki Erina

Developing industrial linkages as spatial binding forces has become crucial for improving firms’ productivity. This paper examines the impacts of the adoption of forward and financial linkages on the vertical integration and performance of textile and garment firms in Egypt. This study uses a sample of 1020 micro-, small-, and medium-sized enterprises, employing propensity score matching to mitigate the endogeneity bias caused by the self-selection problem in adopting industrial linkages. Inverse-probability-weighted regression adjustment is applied as a doubly robust estimator to quantify the impact. The results confirm the positive impact of forward linkage on total factor productivity (TFP). We also found that financial linkage positively affects labor productivity, TFP, and vertical integration, while its impact on exports was marginal. Adopting financial linkage can increase the value-added per labor by 11–13 thousand Egyptian pounds and increase vertical integration by 13 percentage points. Industrial linkages have not realized an impact on exports in the current market structure; however, extending financial linkage works as an alternative to mitigating financial constraints. We underscore the significance of the policy that fosters forward and financial linkages to induce vertical integration and productivity growth.

One of the areas that show the most visible effects of human-induced land alterations is also the world’s most essential resource: water. Decision-makers in arid regions face considerable difficulties in providing and maintaining sustainable water resource management. However, developing appropriate and straightforward approaches for quantifying water use in arid/hyper-arid regions is still a formidable challenge. Meanwhile, a better knowledge of the effects of land use land cover (LULC) changes on natural resources and environmental systems is required. The purpose of this study was to quantify the water consumption in a hyper-arid region (New Valley, Egypt) using two different approaches—LULC based on optical remote sensing data and groundwater storage changes based on Gravity Recovery Climate Experiment (GRACE) satellite data—and to compare and contrast the quantitative results of the two approaches. The LULC of the study area was constructed from 1986 to 2021 to identify the land cover changes and investigate the primary water consumption patterns. The analysis of groundwater storage changes utilized two GRACE mascon solutions from 2002 to 2021 in New Valley. The results showed an increase in agricultural areas in New Valley’s oases. They also showed an increased in irrigation water usage and a continuous decrease in the groundwater storage of New Valley. The overall water usage in New Valley for domestic and irrigation was calculated as 18.62 km3 (0.93 km3/yr) based on the LULC estimates. Moreover, the groundwater storage changes of New Valley were extracted using GRACE and calculated to be 19.36 ± 7.96 km3 (0.97 ± 0.39 km3/yr). The results indicated that the water use calculated from LULC was consistent with the depletion in groundwater storage calculated by applying GRACE. This study provides an essential reference for regional sustainability and water resource management in arid/hyper-arid regions.

The number of deep groundwater wells in the arid lands of Egypt has increased greatly since the mid-twentieth century. Modern well drilling technology using rotary drilling rigs and pumping tests came to Egypt with the beginning of the New Valley Project in 1958, bringing significantly increased water discharge. Taking Rashda Village in Dakhla Oasis as a case study, this paper documents the expansion of agricultural lands as a result of the development and application of well drilling technologies. The materials used include satellite images from 1968 until 2018, and groundwater well data obtained from field visits and governmental reports. The analysis makes clear that there has been a huge change in land use/cover over the past 50 years (1968–2018) with the largest expansion of agricultural lands occurring between 1988 and 2003 driven by acceleration in well drilling. One of the complex phenomena that appeared is the increase in drainage ponds from 15.6 ha in 1968 to 194.4 ha in 2018 where growth of drainage ponds was correlated with the rapid increase in agricultural lands (1998–2003). In the past two decades, Rashda village has been under continuous pressure from population growth and increasing water demand for agricultural, domestic, industrial, and institutional uses. However, the development has continued without attention to its sustainability.