ERF 26th Annual Conference
Foreign Direct Investment and Corruption in Egypt: A Co-integration Analysis
No.
ERF26_179
Publisher
ERF
Date
June, 2020
Topic
F. International Economics
This paper examines the impact of corruption on FDI in Egypt during the period 1970-2015 and to address some of the drawbacks of the empirical literature. Results show a positive yet insignificant relationship between FDI and corruption in Egypt. Since corruption is not found to hinder FDI inflows, treating corruption should be based on sound legal procedures that infringe neither on the freedom of FDI nor on the degree of openness of the economy, which are the real stimulants of FDI in Egypt.
Research Associates
Eman Moustafa
Research Manager, African Export-Import Bank (Afreximbank)
Authors
Jalal Siddiki
Senior Lecturer, Kingston University