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New patterns of world trade and foreign direct investment growth in Egypt

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  • Amany Fakher

Abstract

During the last 30 years, the world economy becomes more globalised and the international trade and FDI were growing faster than many economic activities. The fast growth in international trade is through trade in parts and components which introduced a new phenomenon known as 'international fragmentation of production' and changed the pattern and trends of trade in the world economy. Trade in parts and components has opened up new opportunities for developing countries to participate in world production, which may affect on increase FDI. This paper deals with the relation between trade in parts and components and FDI, both theoretically and empirically, and investigates the effect of trade in parts and components on FDI in Egypt. The empirical analysis finds that trade in parts and components has a significance positive effect on FDI in Egypt during the period 1995-2013. Accordingly, we cannot ignore traditional determinants and institutional determinants (non-traditional determinants).

Suggested Citation

  • Amany Fakher, 2016. "New patterns of world trade and foreign direct investment growth in Egypt," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 9(1), pages 18-32.
    • Handle: RePEc:ids:ijtrgm:v:9:y:2016:i:1:p:18-32
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    Cited by:

    1. Richard Kofi Akoto & Charles Adjasi, 2020. "External credit and export decision: Evidence from Nigeria," African Development Review, African Development Bank, vol. 32(4), pages 540-550, December.

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