| Journal: |
مجلة البحوث التجارية
كلية التجارة - جامعة الزقازيق
|
Volume: |
|
| Abstract: |
like other developing countries, Egypt seeks to attract foreign direct investment to help finance development and bridge the foreign exchange gap without bearing the burden of loaning from abroad, in addition to its importance in transferring modern technology, creating employment opportunities, and increasing local income, which allows for increased local savings in preparation for increasing self-financing for local investment critical to increase capital formation and achieving development goals.
Despite the many benefits of foreign direct investment, it may cause negative effects and harm to its host countries on the economic, social, and environmental. As a result of the increased flow of foreign direct investment to developing countries and the continuation of poverty crises and the insufficiency and scarcity of natural resources, interest in the sustainability of industrial development has emerged.
The research aims to study "the impact of foreign direct investment on sustainable industrial development in Egypt", and in order to achieve the study objective and test its hypothesis, annual time series of its variables in Egypt were relied upon during the period (1991-2021) with a total of 31 annual observations. The study relied on the joint integration test using the Bounds Testing Approach, which is based on the use of autoregressive distributed lags (ARDL). The study reached a number of conclusions, the most important of which is the existence of an inverse relationship between the flow of foreign direct investment and the economic dimension of sustainable industrial development expressed by industrial added value as a percentage of the gross domestic product in the long and short term, and a direct relationship with its social dimension expressed by the labor force employed in the industry in the long and short term, and the existence of a non-linear relationship between foreign direct investment flows and the environmental dimension expressed by carbon emissions from industry in the long and short term, meaning that foreign direct investment negatively affects carbon emissions from industry, but this effect turns positive at high foreign direct investment flows.
|
|
|