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320818

The Impact of Foreign Direct Investment on Economic Growth: Empirical Evidence from Egypt (1980 -2022)

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Last updated: 24 Dec 2024

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Abstract

The impact of foreign direct investment (FDI) on economic booming remains a thorny question for researchers. It has been argued theoretically that FDI is growth-enhancing. However, some existing empirical studies have left researchers and policymakers perplexed as they found an insignificant impact in some special cases. This paper revisited the FDI literature accompanied with analytical review for the FDI spillover transmission channels – that can control the net effect of foreign direct investment on growth – of labor mobility, technological effects, and competition. In addition, it empirically re-examined the impact of Foreign Direct Investment (FDI) on economic growth utilizing time series data of 42 years covering the period 1980 – 2022 in Egypt and estimated Johansen's co-integration and vector error correction model (VECM) in the methodology. The results, based on co-integration analysis, conclusively revealed that FDI affected growth positively in the long run. In addition, VECM has shown that cross-border capital inflows have a significant positive impact on growth in Egypt.

DOI

10.21608/acj.2023.320818

Keywords

Economic growth, Foreign Direct Investment, Spillovers, Co-integration, VECM.

Authors

First Name

Taghreed Abdel Aziz

Last Name

Hassouba

MiddleName

-

Affiliation

Assistant Professor of Finance and Economics Faculty of Economics and Political Sciences Cairo University

Email

taghreedhassouba@feps.edu.eg

City

Cairo

Orcid

-

First Name

Mai Mohammed Abdelrahman

Last Name

Aboeta

MiddleName

-

Affiliation

Economic Researcher- Bachelor of Economics Faculty of Economics and Political Sciences Cairo University

Email

mai.mohammed2018@feps.edu.eg

City

-

Orcid

-

Volume

60

Article Issue

5

Related Issue

43876

Issue Date

2023-09-01

Receive Date

2023-06-05

Publish Date

2023-09-01

Page Start

77

Page End

114

Print ISSN

2682-4183

Online ISSN

2682-4191

Article File

ACJ_Volume 60_Issue 5_Pages 77-114.pdf

PDF . 8.1MB

Link

https://acjalexu.journals.ekb.eg/article_320818.html

Detail API

https://acjalexu.journals.ekb.eg/service?article_code=320818

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3

Type

المقالة الأصلية

Type Code

759

Publication Type

Journal

Publication Title

مجلة جامعة الإسکندرية للعلوم الإدارية

Publication Link

https://acjalexu.journals.ekb.eg/

MainTitle

The Impact of Foreign Direct Investment on Economic Growth: Empirical Evidence from Egypt (1980 -2022)

Details

Type

Article

Created At

24 Dec 2024