The Effect of Foreign Capital Inflows on Economic Growth in Egypt

Abstract

This research is designed to investigate the effects that sources of foreign capital inflows (FCI) have on economic growth in Egypt. Concentration is given to the two significant sources of FCIs in Egypt, migrant remittances (REM) and Net Official Development Aids and Assistance received (ODA) inflows.The study applies the Auto Regressive Distributed Lag (ARDL) Bounds testing method to examine cointegration based on annual time series data for Egypt from 1990 to 2020. Data for analysis are mainly collected from the World Bank development indicators data set (WBI).Results of the study indicate that REM and ODA, as the two significant sources of FCIs, have a positive and significant impact on economic growth in the long term. Indications imply that a 1% increase in REM causes GDP to grow by 0.134 %, while a 1% increase in ODA fosters economic growth by 0.109 %. Furthermore, short-term estimation indicates that the error correction form (ECM) coefficient is (-0.47), implying that GDP adjusts by 47% yearly to return to its equilibrium status.

The Impact of Price Fairness on the Perceived Value and Customer Satisfaction Under the Exchange Rate Change in Hotels in Egypt

“…In Egypt, the strategy of liberalizing the US dollar exchange rate has had varied effects. The depreciation of the EGP against the USD has made the Egyptian tourist destination more affordable and attracts global tourism investments to Egypt (Lamsso & Masoomzadeh, 2017;Abdelgany, 2022). However, significant changes 72 | P a g e https://jaauth.journals.ekb.eg / in the exchange rate may lead to traveler apprehension, causing them to reconsider visiting or even cancel plans to tourist destinations (Agiomirgianakis et al, 2014;Abdelaziz, 2021).…”