Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
9-1-2018
Abstract
This research seeks to empirically examine the impact of Foreign Direct Investment )FDI( on real wages in Egypt. First, we test the effect of FDI on real wages on the whole economy, and then special attention is given to the basic sectors in the economy. For this purpose, we make use of time-series Autoregressive Distributed Lag (ARDL) models utilizing annual data covering the period 1985-2014. Our results reveal that FDI positively affects the average wages in the long-run in almost all conducted models. According to the sectoral models, the highest long-run effect of FDI on wages is detected in the manufacturing sector, while it is insignificant in the tourism sector. Attracting more FDI in general and manufacturing FDI in particular is recommended as this will have a positive effect on average wages and consequently raise the economy’s output and overall income.
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
20
Issue
2
Recommended Citation
Abouelfarag, Hanan A. and Abed, Mohamed S., "The Impact of Foreign Direct Investment on Real Wages in Egypt: A Sectoral Empirical Analysis". Topics in Middle Eastern and North African Economies, electronic journal, 20, 2, Middle East Economic Association and Loyola University Chicago, 2018, http://www.luc.edu/orgs/meea/
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Copyright Statement
© 2018 The Authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.