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Foreign Direct Investment Spillovers: Evidence from Egypt, 2000-2020

Hall, Petronella LU (2023) EOSK12 20231
Department of Economic History
Abstract
Foreign direct investment (FDI) is a crucial element of globalization; knowledge spillovers, increasing employment, and technology transfer through inward FDI promote economic growth. Egypt is the top FDI recipient in Africa, and empirical literature finds a positive correlation between FDI and economic growth in the country; however, there are limited academic discourses on the channels through which FDI positively affects the economy. The thesis investigates FDI spillovers in Egypt using FDI-led growth hypotheses and absorptive capacity theoretical insights. The following research question was analyzed through an exploratory mixed-methods approach; How have spillovers from inward foreign direct investment (FDI) contributed to Egypt's... (More)
Foreign direct investment (FDI) is a crucial element of globalization; knowledge spillovers, increasing employment, and technology transfer through inward FDI promote economic growth. Egypt is the top FDI recipient in Africa, and empirical literature finds a positive correlation between FDI and economic growth in the country; however, there are limited academic discourses on the channels through which FDI positively affects the economy. The thesis investigates FDI spillovers in Egypt using FDI-led growth hypotheses and absorptive capacity theoretical insights. The following research question was analyzed through an exploratory mixed-methods approach; How have spillovers from inward foreign direct investment (FDI) contributed to Egypt's economic growth? The thesis indicates that there are infrastructural spillovers from FDI; however, considering the country's large amount of FDI, a more considerable amount of infrastructural-driven projects is expected. FDI has generated employment spillovers and potential for further job creation considering the sectors receiving the most investment. Evidence on technology spillovers is limited, yet there are more opportunities if the government promotes higher human capital development and policies that create incentives for FDI inflows. For Egypt to exploit FDI spillovers and increase its absorptive capacity, there is a need for lower corruption and further infrastructure development. (Less)
Please use this url to cite or link to this publication:
author
Hall, Petronella LU
supervisor
organization
course
EOSK12 20231
year
type
M2 - Bachelor Degree
subject
keywords
Foreign Direct Investment, FDI, Egypt, Spillovers, Absorptive Capacity
language
English
id
9123239
date added to LUP
2023-06-22 12:19:52
date last changed
2023-06-22 12:20:16
@misc{9123239,
  abstract     = {{Foreign direct investment (FDI) is a crucial element of globalization; knowledge spillovers, increasing employment, and technology transfer through inward FDI promote economic growth. Egypt is the top FDI recipient in Africa, and empirical literature finds a positive correlation between FDI and economic growth in the country; however, there are limited academic discourses on the channels through which FDI positively affects the economy. The thesis investigates FDI spillovers in Egypt using FDI-led growth hypotheses and absorptive capacity theoretical insights. The following research question was analyzed through an exploratory mixed-methods approach; How have spillovers from inward foreign direct investment (FDI) contributed to Egypt's economic growth? The thesis indicates that there are infrastructural spillovers from FDI; however, considering the country's large amount of FDI, a more considerable amount of infrastructural-driven projects is expected. FDI has generated employment spillovers and potential for further job creation considering the sectors receiving the most investment. Evidence on technology spillovers is limited, yet there are more opportunities if the government promotes higher human capital development and policies that create incentives for FDI inflows. For Egypt to exploit FDI spillovers and increase its absorptive capacity, there is a need for lower corruption and further infrastructure development.}},
  author       = {{Hall, Petronella}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Foreign Direct Investment Spillovers: Evidence from Egypt, 2000-2020}},
  year         = {{2023}},
}