Many developments had occurred in the global economy. Among these developments is the increase of capital flows across countries. Foreign direct investment (FDI) is considered to be one of the cross border capital flows that countries use in order to enhance their economic growth. This study focuses on how FDI impacts the economic growth of Egypt for a period from 1980 to 2018. The study applies Johansen co-integration, Vector Error Correction Model (VECM) and Ganger causality in the methodology. Johansen co-integration results show that a long run relationship exists among the variables. In addition, VECM shows that FDI exerts a positive significant impact on the economic growth of Egypt. Finally, a bidirectional causality between FDI and the economic growth of Egypt is shown by Granger causality.

Foreign debt is considered to be a source of income for countries. If foreign debt is managed well and directed towards productive projects, then it might enhance the countries' economic growth. However, foreign debt has many costs that might cause deterioration in the economy. This study aims to investigate how total foreign debt impacts the economic growth of Egypt for a time period of 39 years . In the methodology, descriptive statistics, unit root tests, Johansen co-integration and Vector Error Correction Model (VECM) are used. The results show that total foreign debt exerts a significant long run negative impact on the Egyptian economic growth, while the results are insignificant in the short run.