Scientific Journal Of King Faisal University
Basic and Applied Sciences


Scientific Journal of King Faisal University / Humanities and Management Sciences

The impact of foreign capital Inflow on savings, investment and Economic growth rate in Egypt: An econometric analysis

(Mohamed Abdel Wahed Mohamed)


This paper examines the effect of foreign capital inflow on savings, investment and economic growth rate in Egypt. Regression results showed that foreign capital inflow has a significant positive effect on savings and investment and in turn on the economic growth rate. Also, the complementarity between foreign direct investment (FDI) and domestic investment was established. The results indicated a strong positive effect of investment on economic growth rate in Egypt. The paper demonstrates the importance of foreign capital in improving savings, investment and growth performance in Egypt.