Impact of Vertical and Horizontal Expansion on Employment Generation in the Egyptian Broiler Sector

The Egyptian broiler sector constitutes a central component of national food security, yet the socio-economic consequences of its various expansion strategies remain inadequately quantified. This study investigates the differential impacts of vertical and horizontal expansion on employment generation, investment returns, and wage outcomes within the sector. Utilizing time-series data spanning 2000 to 2024, the analysis applies growth rate calculations alongside independent samples t-tests to assess the effectiveness of these expansion approaches. The results demonstrate that both vertical and horizontal expansion significantly enhance productive capacity and stimulate job creation. Horizontal expansion, on average, generates approximately 0.46 thousand additional jobs per year, accompanied by potential investment returns of EGP 5.93 million. In contrast, vertical expansion contributes around 0.34 thousand jobs annually, with associated investment returns of EGP 4.36 million. Despite these positive outcomes in productivity and employment, the analysis reveals that neither expansion model produces a statistically significant increase in aggregate wage levels. This finding showed a notable decoupling between sectoral productivity gains and labor compensation, suggesting that employment growth does not necessarily translate into improved worker earnings. These insights provide critical quantitative evidence for policymakers and sector stakeholders, emphasizing the importance of adopting integrated policy frameworks that not only promote production expansion but also incorporate labor market interventions.