The Effect of Foreign Direct Investment on Economic Growth of Egypt

MASTER OF INTERNATIONAL BUSINESS ADMINISTRATION

(MIBA)

The Effect of Foreign Direct investment on economic Growth of Egypt  

BY

Samer Sohry Saad

Supervised by

Dr.Ashraf Elsafty

This paper was submitted in partial fulfillment of the requirements for the degree of

MAY 2017

TABLE OF CONTENT

Contents

LIST OF FIGURES        4

LIST OF ABBREVIATIONS        6

ACKNOWLEDGEMENTS        7

ABSTRACT        8

CHAPTER 1: INTRODUCTION        9

Historical Data about Egypt.        10

Problem Definition        12

Significance of the study        16

Research Conceptual model and variables        17

Secondary data analysis        17

Research Variables        18

- Dependent variable:        18

- Independent Variables:        18

- Moderating Variables:        19

RESEARCH LIMITATIONS        19

RESEARCH OBJECTIVES        19

RESEARCH QUESTIONS        19

∙        Major Question        19

∙        Minor Questions        20

CHAPTER 2: LITERATURE REVIEW        21

2.1 Foreign Direct Investment and Economic Growth in Some MENA Countries        21

2.2 Foreign Direct Investment (FDI) Really Matter in Developing Countries        21

2.3 FDI flows and host country economic development        22

2.4 The effects of foreign direct investment on the host country's economic growth        23

2.5 The Effect of Foreign Direct Investment on Economic Growth        24

2.6 The Effects of Foreign Direct Investments for Host Country’s Economy        25

2.7 Impact of FDI on Economic Development A Causality Analysis for Singapore        26

2.8 Foreign direct investment and growth: theory, evidence and lessons for Egypt        27

2.9 Foreign direct investment and economic growth: empirical analysis        28

2.10  Foreign Direct Investment, Exports and Economic Growth: Some African Evidence        29

2.11 Impact of FDI and Trade Openness on Economic Growth        29

2.12 Foreign Direct Investment, Country Capabilities and Economic Growth        30

2.13 Foreign Direct Investment, Financial Development, and Economic Growth: Evidence from the Arab Countries        31

2.14 Does foreign direct investment cause economic growth        32

2.15 Foreign direct investment and growth: theory, evidence and lessons for Egypt        33

2.16 Conclusion        33

Chapter3: Theoretical Framework        35

3.1 Introduction        35

3.2 Problem Definition        35

3.3 Research objective        35

3.4 Theoretical Frame Work        35

3.5 Research Variables        36

3.6 Research limitations        37

3.7 Research Assumption        37

3.8 Research Questions        38

3.9 Research Hypothesis        38

3.10 Research Methodology        39

3.11 Data collection        39

3.12 Finding        40

References        41

LIST OF FIGURES

Figure 1.1 table for Egypt Finical and Economic Figures (2006-2016)
Figure 1.2 Plotting Egypt FDI Inflow from 20016 -2016
Figure 1.3 Plotting Egypt Growth rate from 2006-2016
Figure 1.4 Plotting Egypt Exporting Balance from 2006-2016
Figure 1.5 Plotting Egypt importing Balance from 2006-2016
Figure 1.6 Conceptual Model variables
Figure 2.7 different models and variable that was used at the literature
Figure 3.1: Proposed Theoretical Framework

LIST OF ABBREVIATIONS

FDI                Foreign Direct Investment

GR                Growth Rate

BOP                Balance of Payment

TB                         Trade Balance

GDP                gross Domestic Product

CBE                Central Bank Of EGYPT

ICT                  Information and Communication Technology

FPI                 foreign portfolio investment

MENA           Middle East and North Africa region

UAE                    United Arab Emirates

SADC            Southern African Development Community

ACKNOWLEDGEMENTS

I would like to take this part of my research to introduce my warm thanks to all professors teachers and assistants whom encored me and guide me in addition to their support during the past 2 years , they provide me with a great knowledge regarding  different topics .

I would specially thank Dr. Ahmed Mabrouk for his assistant during MBA track and subjects

Also my deep and great thanks for Dr.Ashraf Elsafty for guiding me through the research topic,

Helping me through his simplified professional way across the difficult areas of the thesis