Assessment of FDI Incentives in Egypt - Economic Research Forum (ERF)

Assessment of FDI Incentives in Egypt

Nada Massoud


Date:
November, 2003

NO.
336

Length:
22 pages

Topic:
O1. Economic Development

The paper tests the hypothesis that the FDI incentives scheme that Egypt chose to adopt since the open door policy in 1974 did not have a significant effect on the volume of FDI inflows attracted to Egypt and placed budgetary burdens on the Egyptian tax-payers. The paper quantitatively estimates the effect of the incentives offered by Egypt to foreign investors in Law 8/1997, on the incremental increase in FDI inflows to Egypt and on the cost born by the budget to support these incentives. It is concluded that the policy on FDI in Egypt should have focused on deriving macroeconomic benefits from FDI rather than on attracting the FDI. Offering incentives, especially tax incentives, is not the way out to more benefits, but improving the availability of sufficiently qualified labor, focusing on the establishment of sound institutions, and opening up to international trade will make Egypt’s locational characteristics more favorable to potential investors.

Nada Massoud


Project

EVENTS

There are no Events PAST



Related Publications

Working Papers

Household Vulnerability and Resilience to Shocks in Egypt

Imane Helmy and Rania Roushdy

A growing body of literature points to the role of exposure to shocks ... read more


Working Papers

Changes in Height-for-Age of Children 1995 to 2014

Reem Hashad

Malnutrition is currently one of the largest threats to public health, with three ... read more