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389291

The Impact of Foreign Direct Investment on Economic Development Indicators in Egypt

Article

Last updated: 01 Jan 2025

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Subjects

-

Tags

Agricultural economics

Abstract

This study aimed to verify the effects of foreign direct investment in Egypt, and to conduct a standard measure of the impact of foreign direct investment (FDI) on economic development indicators in Egypt, which are represented by the GDP growth rate, national income (NI), inflation (INF), and unemployment rate (UNemp), total capital formation (TCF). The study assumed a basic hypothesis, which is: "foreign direct investment has a positive impact on economic development indicators in Egypt". The measurement was done using multiple regression model to measure the impact of foreign direct investment on economic development indicators in Egypt. The results of the study indicate that the relationship between foreign direct investment from Egypt and both GDP and the NI is statistically significant direct relationship, despite its inconsistency with economic theory. This may be due to the exit of many foreign investments as a result of economic and political changes during the period 2011-2018, which encouraged local production from national resources and thus increased GDP and NI. In addition, the relationship between inflow foreign direct investment and both inflation and unemployment rates is consistent with economic theory, as with the increase in investment, inflation increases and the unemployment rate decreases. According to the results the research recommends, encouraging local production due to its positive impact on GDP and NI, and launching a package of investment incentives to attract foreign direct investment due to its positive impact on inflation and unemployment.

DOI

10.21608/asejaiqjsae.2024.389291

Keywords

Economic Reform, inflows investments, national income, GDP, Inflation

Authors

First Name

Walaa

Last Name

Ali Mohamed

MiddleName

-

Affiliation

Associated Professor, Cairo University

Email

walaaali82@agr.cu.edu.eg

City

القاهرة

Orcid

-

First Name

Jarrah

Last Name

Motlak Dughaim Alkhaldi

MiddleName

-

Affiliation

General Agency of Practical Education, Kuwait

Email

jarah_55@hotmail.com

City

-

Orcid

-

First Name

Lafi

Last Name

Mubarak Saad Alazmi

MiddleName

-

Affiliation

General Agency of Practical Education, Kuwait

Email

drlafy1991@gmail.com

City

الكويت

Orcid

-

Volume

45

Article Issue

4

Related Issue

51107

Issue Date

2024-12-01

Receive Date

2024-09-20

Publish Date

2024-12-30

Page Start

595

Page End

602

Print ISSN

1110-0176

Online ISSN

2536-9784

Article File

ASEJAIQJSAE_Volume 45_Issue 4_Pages 595-602.pdf

PDF . 253.4kB

Link

https://asejaiqjsae.journals.ekb.eg/article_389291.html

Detail API

https://asejaiqjsae.journals.ekb.eg/service?article_code=389291

Order

3

Type

Original Article

Type Code

53

Publication Type

Journal

Publication Title

Alexandria Science Exchange Journal

Publication Link

https://asejaiqjsae.journals.ekb.eg/

MainTitle

The Impact of Foreign Direct Investment on Economic Development Indicators in Egypt

Details

Type

Article

Created At

23 Dec 2024