Have FDI enhanced Growth in Egypt?

Soheir Tarek () and Hebatallah Ghoneim
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Soheir Tarek: Faculty of Management Technology, German University in Cairo

No 49, Working Papers from The German University in Cairo, Faculty of Management Technology

Abstract: Foreign Direct Investment (FDI) is usually considered an important catalyst for economic growth in developing countries. FDI plays an important role in transferring technology from developed to emerging economies, it also stimulates domestic investments and enhances human as well as physical capital in the host countries. This paper also aims at identifying the effect of FDI on the Egyptian economy. The analysis is carried out using an OLS regression model with three variables. Time series data for FDI inflows, gross capital formation (GCF) and labor force (LF) were gathered for Egypt over the period 1990-2014. After gathering the results of both the single and multiple regressions, some policy recommendations are suggested to enhance and maximize the effect of FDI on economic growth in Egypt.

Keywords: Economic Growth; Egypt; Developing countries; Foreign Direct Investment (search for similar items in EconPapers)
JEL-codes: F21 F43 O40 O55 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2018-09
New Economics Papers: this item is included in nep-ara, nep-fdg and nep-int
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