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The Economic Determinants of Chinese Foreign Direct Investment in Egypt

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China and Africa

Part of the book series: The Palgrave Macmillan Asian Business Series ((PAMABS))

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Abstract

This chapter investigates the determinants of foreign direct investment (FDI) by Chinese multinational enterprises (MNEs) over the period 1985–2011. This chapter estimates a single-equation model which employs long-run co-integration analysis and short-run analysis (error correction mechanism (ECM)). This chapter is founded on a conventional result for market size. I infer from the significant role played by Egyptian natural resource endowments that the institutional environment has strongly shaped Chinese FDI, leading to significant natural resources-seeking FDI. I also find that policy liberalisation in China has had a positive influence in stimulating Chinese FDI in Egypt. Despite this model has been used to estimate the determinants of FDI by Chinese MNEs in several countries, this is the first time to use it in Egypt using a time series analysis.

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Authors and Affiliations

  1. Tanta University, Cairo, Egypt

    Hany Elshamy

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  1. Hany Elshamy
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Correspondence to Hany Elshamy .

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Editors and Affiliations

  1. International Business and Economics, University of Greenwich, London, United Kingdom

    Young-Chan Kim

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Elshamy, H. (2017). The Economic Determinants of Chinese Foreign Direct Investment in Egypt. In: Kim, YC. (eds) China and Africa. The Palgrave Macmillan Asian Business Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-47030-6_7

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