Gadallah, K., Alnagar, T. (2023). The Impact of Foreign Direct Investment on Economic Growth in High- and Middle-Income Countries: Evidence from Panel Data Analysis. test, 31(1), 54-79. doi: 10.21608/inp.2023.300188
Karam Gadallah; Tamer Alnagar. "The Impact of Foreign Direct Investment on Economic Growth in High- and Middle-Income Countries: Evidence from Panel Data Analysis". test, 31, 1, 2023, 54-79. doi: 10.21608/inp.2023.300188
Gadallah, K., Alnagar, T. (2023). 'The Impact of Foreign Direct Investment on Economic Growth in High- and Middle-Income Countries: Evidence from Panel Data Analysis', test, 31(1), pp. 54-79. doi: 10.21608/inp.2023.300188
Gadallah, K., Alnagar, T. The Impact of Foreign Direct Investment on Economic Growth in High- and Middle-Income Countries: Evidence from Panel Data Analysis. test, 2023; 31(1): 54-79. doi: 10.21608/inp.2023.300188

The Impact of Foreign Direct Investment on Economic Growth in High- and Middle-Income Countries: Evidence from Panel Data Analysis

المجلة المصرية للتنمية والتخطيط
Volume 31, Issue 1, March 2023, Pages 54-79    PDF (1.33 M)
Document Type: المقالة الأصلية
DOI: 10.21608/inp.2023.300188
Authors
Karam Gadallah* ; Tamer Alnagar*
Al-Azhar University, Cairo, Egypt.
Abstract
The last two decades have seen a growing trend towards foreign direct investment (FDI), particularly in developing countries, where FDI is seen as an important component of their economic development strategy. Aside from being an essential factor in economic growth in emerging and developed countries. Hence, this study examined the relationship between (FDI) and economic growth in a sample of 60 countries- according to different income levels- using panel data for the period 2000-2019. The study concluded that (FDI) has a positive impact on economic growth. Interestingly, there were also differences in impact ratio, according to income levels; (FDI) in the lowest-income countries has a greater impact on economic growth compared to the high countries; increasing FDI by 1% boosts economic growth by 0.13%, 0.17%, and 0.03% in middle-income countries (lower segment), middle-income countries (upper segment), and high-income countries, respectively. In contrast to earlier findings, however, the results of this investigation show that (FDI) is statistically significant in explaining variation in the growth rates of the economies of the observed countries.
Keywords
Foreign Direct Investment; FDI; Economic Growth; Income; Panel Data
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