THE EFFECT OF FOREIGN DIRECT INVESTMENT ON THE INFLATION RATE IN THE ARAB REPUBLIC OF EGYPT AND THE KINGDOM OF SAUDI ARABIA

Document Type : Review Article

Authors

1 Post Grad. Student, Faculty of Graduate Studies and Environmental Research, Ain Shams University

2 Faculty of Commerce, Ain Shams University

Abstract

The study aimed to measure the impact of foreign investments on economic growth, and the study sought to direct policy makers and decision makers to the important role played by foreign direct investment and its impact on economic growth, through a main goal is to measure the impact of foreign direct investment on the rate of inflation, and the research was adopted On the descriptive analytical approach, which includes the use of the data collection method, where the data of the World Bank was used, and its statistical analysis in order to test the validity of the research hypotheses.
The research found:

There is a significant statistical impact of foreign direct investment on the inflation rate in the Arab Republic of Egypt.
There is a significant statistical impact of foreign direct investment on the inflation rate in the Kingdom of Saudi Arabia.
Foreign direct investment is one of the types of financial flows, as it works to raise the country's economic level by providing hard currency, technology and skills, as well as reducing unemployment and improving this balance of payments at the internal level, while at the external level it works to liberalize and globalize the international economy. Multiple shapes

The most important recommendations:

The Egyptian government must work hard in order to achieve security, political and economic stability, and work to find infrastructure, which is one of the important factors to attract investment in general.
The necessity of eliminating financial and administrative corruption in the comparison countries, through tightening the procedures of the Administrative and Financial Control Authority on state institutions and coordinating between them, and reviewing global reports that talk about corruption, especially Transparency International, to ensure that it knows all the information in order to raise the rank of Egypt and Saudi Arabia in the index .
Improving the work of the financial, monetary and commercial policies in the Arab Republic of Egypt and the Kingdom of Saudi Arabia in order to organize the work of the economy and address the problems that the economy suffers from such as problems of inflation, unemployment, public budget deficit, debts and others.

 

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Journal of Environmental Science
Volume 50, Issue 9 - Serial Number 9
Part 3: Economics, Law Science
September 2021
Pages 159-188

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