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Determinants Of Egyptian Arab Inter-Investments: Gravity Model Evidence

Author

Listed:
  • Ahmed, Mohamed Abdelhameed

    (Department of Agricultural Economics, Faculty of Agriculture, Fayoum University, Egypt)

  • Faisal, Eid Naaimy

    (Department of Agricultural Economics, Faculty of Agriculture, Fayoum University, Egypt,)

Abstract

The research uses the gravity model to assess the flows of investments between Egypt and Arab countries and identifies the most important factors influencing them by using the time series data regression. Results revealed that the growth of Egyptian FDI outflows to Arab countries is expected to be influenced by Egypt and Arab countries’ GDP, Per capita GDP for Arab countries and distance. Improving indicators such as Corruption perception, Business environment, Investment attractiveness, Infrastructure, and Market size in Arab countries is considered very crucial for the development of Egypt’s FDI outflows to Arab countries. On the other hand, Egypt and Arab countries’ GDP, distance, and Egypt’s population are expected to influence Egypt’s FDI inflows from Arab countries, while indicators such as Competitiveness, Corruption perception, Political stability, Business environment, Investment attractiveness, and Market size are seen to be very important for Egypt to consider for attracting FDI inflows from Arab countries

Suggested Citation

  • Ahmed, Mohamed Abdelhameed & Faisal, Eid Naaimy, 2020. "Determinants Of Egyptian Arab Inter-Investments: Gravity Model Evidence," Academic Review of Humanities and Social Sciences, Bursa Teknik Üniversitesi, vol. 3(1), pages 161-178.
    • Handle: RePEc:ris:arhuss:0023
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    References listed on IDEAS

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