2021
DOI: 10.32479/ijefi.11762
|View full text |Cite
|
Sign up to set email alerts
|

The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)

Abstract: 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-i… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

3
12
0

Year Published

2023
2023
2025
2025

Publication Types

Select...
8
1

Relationship

0
9

Authors

Journals

citations
Cited by 14 publications
(15 citation statements)
references
References 41 publications
3
12
0
Order By: Relevance
“…The result of their insignificant impact is inconsistent with Iortyer and Onuh (2022), Duramany-Lakkoh, Jalloh and Jalloh (2021), and Chinodzama (2021) who established that FDI, external investment inflow and domestic investment have a long-run positive impact on the manufacturing sector. The findings by Atlam, Soltan, and Mohamed (2017) that private investment exerts a negative impact on the manufacturing sector are in consonant with the findings of this study. This finding does not underscore the significance of FDI to the manufacturing sector in Nigeria but restates that the level of net inflows of FDI into the country is negligibly low to propel any influence on the manufacturing sector.…”
Section: Source: Authors' Computationsupporting
confidence: 91%
“…The result of their insignificant impact is inconsistent with Iortyer and Onuh (2022), Duramany-Lakkoh, Jalloh and Jalloh (2021), and Chinodzama (2021) who established that FDI, external investment inflow and domestic investment have a long-run positive impact on the manufacturing sector. The findings by Atlam, Soltan, and Mohamed (2017) that private investment exerts a negative impact on the manufacturing sector are in consonant with the findings of this study. This finding does not underscore the significance of FDI to the manufacturing sector in Nigeria but restates that the level of net inflows of FDI into the country is negligibly low to propel any influence on the manufacturing sector.…”
Section: Source: Authors' Computationsupporting
confidence: 91%
“…It can be concluded that if there is an increase in the economic growth of 1%, the value of an investment will increase by 16,366,980 billion rupiahs in conditions of cateris paribus and vice versa. Furthermore, these results are in line with Gürsoy, Sekreter, and Kalyoncu (2013), Simionescu (2017), Sakali (2013), Sweis, Sabri, and Suos (2018), Alzaidy et al (2017) through the results of research in several countries it is known that in the long-run foreign direct investment (FDI) has a causal relationship to economic growth.…”
Section: Determination Of Interregional Investment In Riau Provincesupporting
confidence: 81%
“…Other studies from Rahman (2015) results obtained in this research signify a negative correlation between FDI and economic growth and may be a concern for the government of Bangladesh. Moreover, research results from Sweis, Sabri, and Suos (2018) and Alzaidy et al (2017) show that in the long-run foreign direct investment (FDI) has a causal relationship to economic growth.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Research related to this has been carried out by Alfaro et al (2004) who stated that domestic financial development is an important prerequisite for FDI to have a positive influence on economic growth. Riache et al (2021) in Algeria, Osei & Kim (2020) in middle and high income countries, Sghaier (2018) in North Africa, Alzaidy et al (2017) in Malaysia, Bahri et al (2017) in developing countries, Jahfer & Inoue (2014) in Sri Lanka, Choong (2012) in Malaysia, Adeniyi et al (2012) in small open developing economies, Shahbaz et al (2011) di Portugal, Hermes & Lensink (2003) in LDCs (Less Developed Countries) who have almost the same opinion that there is a link between domestic financial development and the positive effect of FDI on economic growth, where countries with more advanced financial development conditions will benefit from more FDI. Thus, the main pillar in the success of FDI depends on the creation of conditions conducive to economic growth.…”
Section: Introductionmentioning
confidence: 99%