The impact of fdi on exports in Egypt

Abstract EN

In recent decades, emerging and developing countries have been racing in the context of attracting Foreign Direct Investments (FDI).

However, the impact of FDI on exports is ambiguous depending on whether they are substitutes or complements.

In addition, there is no olute opinion that determines the significance of FDI impact on exports.

The flow of FDI contributes to increasing economic growth and enhancing economic development by improving the infrastructure, creating job opportunities, technology diffusion, and providing an appropriate resource for financing investments.

Many economists consider that the importance of FDI as directly increasing exports.

Therefore, this study aims to determine the impact of FDI on exports in Egypt in both the short run and the long run.

This paper uses the cointegration method Autoregressive Distributed Lag Model (ARDL) during the period from 1980 to 2018.

The study proves that FDI promotes exports in the long run as well as gross domestic savings and the depreciation of local currency (EGP).

However, in the short run, only gross domestic savings, and the depreciation of local currency increase exports.