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323246

Credit Rating as A Determinant of FDI Flows in Egypt

Article

Last updated: 24 Dec 2024

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الأقتصاد

Abstract

Domestic financing gap resulting from the lack of sufficient domestic savings to finance national investments, is one of the major economic problems in developing countries, putting these countries in the midst of a constant need for foreign capital in the form of direct or indirect investments. economic history indicates that the ability of the countries of the world to attract the optimal pattern of foreign direct investment, as it indicates that foreign investors do not risk their investments without studying the economic, political and social environment in the host country.  this paper used analytical methods by analysis the data by using econometric models' framework which it allows measure the impact of the credit rating for the FDI, by using the variables credit rating from the Moody's agency and other variables such as credit GDP and Trade-GDP and gross fixed capital formulation growth rate, Exchange Rate as independent variable's and FDI as Dependent Variable. This paper reach to the positive rate is insignificant in the short run and the negative rating is significant that's mean the negative rate for the economy will decreasing the FDI to the Egyptian Economy (short Run) while the positive rating will not affect in the investment inflows. The variables such as (credit GDP) and (trade) are significant in the short run that mean the government should decreed the policies and procedures are related to trade and credit to attractive the FDI.  Paper recommended to Introducing “Mixed-financing" approaches and risk transfer mechanisms such as “Export-Credit" and political risk insurance, where Mixed finance can stimulate investment by shifting some risk away from investors. such as Political Risk Insurance and Dispossession, wars, and civil unrest.

DOI

10.21608/jces.2023.323246

Keywords

FDI, credit rating, Creditworthiness, GDP, Mixed-financing

Authors

First Name

Ahmed

Last Name

Said Karam Elbokl

MiddleName

-

Affiliation

Lecturer of economics- Faculty of Politics & Economic – Suez university

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City

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Orcid

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Volume

14

Article Issue

3

Related Issue

43914

Issue Date

2023-07-01

Receive Date

2023-07-01

Publish Date

2023-07-01

Page Start

60

Page End

113

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_323246.html

Detail API

https://jces.journals.ekb.eg/service?article_code=323246

Order

89

Type

المقالة الأصلية

Type Code

986

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات التجارية والبيئية

Publication Link

https://jces.journals.ekb.eg/

MainTitle

Credit Rating as A Determinant of FDI Flows in Egypt

Details

Type

Article

Created At

24 Dec 2024