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Push Factors of Emerging Multinational Corporations: Evidence from South Africa and Egypt

Author

Listed:
  • Mustafa Sakr

    (Department of Economics, University of Pretoria, South Africa)

  • Andre Jordaan

    (Department of Economics, University of Pretoria, South Africa and IPAG Business School, Paris, France)

Abstract

As literature remains sparse regarding emerging African multinational corporations (EAMNCs), this article focuses on examining the key push factors (i.e. home country macroeconomic specifications) influencing the outward foreign direct investment flow from South Africa and Egypt. Based on dynamic panel data model estimation, the empirical research proves that trade openness, patent and the gross domestic product (GDP) and the GDP growth rate of South Africa and Egypt are dominant drivers of their outward foreign direct investment. In contrast, the number of investment treaties and inward foreign direct investment rate do not significantly influence outbound investment decisions of South African and Egyptian corporations.

Suggested Citation

  • Mustafa Sakr & Andre Jordaan, 2017. "Push Factors of Emerging Multinational Corporations: Evidence from South Africa and Egypt," Working Papers 201709, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201709
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    References listed on IDEAS

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    More about this item

    Keywords

    South African MNCs; Egyptian MNCs; emerging African MNCs; emerging MNCs; push factor determinants of OFDI;
    All these keywords.

    JEL classification:

    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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