أبعاد إقتصادية
Volume 11, Numéro 1, Pages 367-390
2021-06-30

The Use Of Auto-regressive Distributed Lag Method In Investigating The Role Of Foreign Direct Investment In Stimulating Human Development In Egypt For The Period 1990-2018

Authors : Alhakimi Saif Sallam . Shama Talat Rashad .

Abstract

This study represents an attempt to investigate two issues, a) to find out the role of foreign direct investment (FDI) in improving human development (H.D.), b) to determine the causal-order between inward Foreign Direct Investment (FDI) and Human Development (H.D.) using a time series data set for Egypt over the period 1990-2018. The inflows of FDI to Egypt raise how these inflows affect its human welfare in terms of the interaction between FDI and human development. Despite the fact, limited studies are investigating the link between FDI and H.D., the causality between them has not been investigated in a reasonable procedure. The paper implements the Auto Regressive Distributed Lag (ARDL)-Bounds testing approach to analyze maintaining the time series properties in terms of stationarity. Empirical results obtained from time-series analysis indicate that FDI Granger causes HDI. It also demonstrates that FDI and HDI adjust to their long-run equilibrium relationship between 1990 – 2018.

Keywords

Foreign Direct Investment ; Human Development ; Cointegration, ; Auto Regressive Distributed Lag ; Bounds Testing