Push Factors of Emerging Multinational Corporations: Evidence from South Africa and Egypt

Mustafa Sakr () and Andre Jordaan
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Mustafa Sakr: Department of Economics, University of Pretoria, South Africa

No 201709, Working Papers from University of Pretoria, Department of Economics

Abstract: As literature remains sparse regarding emerging African multinational corporations (EAMNCs), this article focuses on examining the key push factors (i.e. home country macroeconomic specifications) influencing the outward foreign direct investment flow from South Africa and Egypt. Based on dynamic panel data model estimation, the empirical research proves that trade openness, patent and the gross domestic product (GDP) and the GDP growth rate of South Africa and Egypt are dominant drivers of their outward foreign direct investment. In contrast, the number of investment treaties and inward foreign direct investment rate do not significantly influence outbound investment decisions of South African and Egyptian corporations.

Keywords: South African MNCs; Egyptian MNCs; emerging African MNCs; emerging MNCs; push factor determinants of OFDI (search for similar items in EconPapers)
JEL-codes: F21 P45 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2017-02
New Economics Papers: this item is included in nep-afr, nep-ara and nep-int
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