Analysing the Suez Canal Construction using the Multiplier Effect

 

The Suez Canal in Egypt was recently revamped, adding a 35 kilometer lane and creating a freer environment for ships to move in both directions. By analysing this project using the multiplier effect, not only can the canal handle more ships, but construction companies involved hired more staff, annual disposable is rising, and real GDP growth in Egypt as a whole actually went up by 1.6 percentage points.

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