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The Impact of Foreign Capital Inflows on Economic Growth and Employment in Egypt: A Sectoral Empirical Analysis

Author

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  • Hanan Aboel Farag

    (Damanhour University, Egypt)

  • Mohamed Sayed Abed

Abstract

This paper traces the effect of “Greenfield Investment” disaggregated into six sectors on the one hand and the effect of external debt on the other hand on sectoral output and employment in Egypt over the period 1983-2014. We conducted our analysis in three stages; an aggregate time series analysis (ARDL error correction model), a sectoral time series analysis and finally a panel model in conducted (panel ARDL model). Research results reveal that the effect of real FDI and external debt on growth is either insignificant or even negative in the long-run, although the effect of FDI was positive in the short-run. Concerning employment; the effect of external debt on the employment level is insignificant while that of FDI is positive in the long-run.

Suggested Citation

  • Hanan Aboel Farag & Mohamed Sayed Abed, 2017. "The Impact of Foreign Capital Inflows on Economic Growth and Employment in Egypt: A Sectoral Empirical Analysis," Working Papers 1152, Economic Research Forum, revised 11 Sep 2003.
    • Handle: RePEc:erg:wpaper:1152
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