Attracting outsourcing as a new form of foreign direct investment (FDI)‎

Abstract EN

This paper analyzes the outsourcing as a new ship of Foreign Direct Investment (FDI), based on the analytical approach, starting from : I-Defining outsourcing, which is defined in February 2004, by the members of president Bush's council of economic advisers : "outsourcing of professional services is a prominent example of a new type of trade".

Outsourcing means more than just the purchase of raw materials and standardized intermediate goods, it means finding a partner with which a firm can establish a bilateral relationship and having the partner undertake relationship-specific investments, so that it becomes able to produce goods or services that fit the firm's particular needs.

II-The investment climate in Egypt : with concentrate on the basic foundations of a good investment climatlike : A : Stability and Security B : Regulation and Taxation C : Finance and Infrastructure D : Workers and Labor Markets.

After analyzes this factors, the third section of research is.

III- The effects of FDI on host countries with special reference to some effects such as : A : Effects on Development through Trade.

B : Direct effects on Development, where outsourcing has different effects on saving and investment, technology transfer and innovation, entrepreneurship and linkages, employment and skill development; and other effects.

IV- At the end of this paper we have some conclusions about the important of outsourcing as a new ship of FDI.