"Exploring the Long-Run and the Short-Run Determinants of Infrastructure Investment in Egypt " | ||||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||||
| Volume 6, Issue 2 - Serial Number 1, July 2025, Page 471-505 PDF (1.18 MB) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/cfdj.2025.380507.2246 | ||||
 View on SCiNiTO | ||||
| Author | ||||
Wael Mostafa Hassan Mohamed 
| ||||
| Faculty of Financial and Administrative Sciences, Pharos University in Alexandria | ||||
| Abstract | ||||
| This study explores the dynamic link between infrastructure investment measured by African Infrastructure Development Index (AIDI) and four crucial macroeconomic variables— GDP growth, inflation, foreign direct investment (FDI), and carbon footprint (CFP)—in Egypt, using the Vector Error Correction Model (VECM). This dynamic relationship has been tested to explore the long run and the short run relationships between Infrastructure Investments in Egypt and the selected macroeconomic variables from 2005 till 2022. The findings reveal a long-run association between the variables with AIDI and GDP growth recording the highest speed of adjustment. In the Long run, AIDI serves as a driving force behind FDI and in turn positively affects growth but has been found to have adverse short-run effects on both economic growth and carbon footprint. These findings clearly point to the need for infrastructure investments to have a close alignment with macroeconomic and environmental goals, while addressing short-term disruptions. | ||||
| Keywords | ||||
| Infrastructure; African Infrastructure Development Index (AIDI); Foreign Direct Investment (FDI); Carbon Footprint (CFP); Vector Error Correction Model (VECM) | ||||
|
Statistics Article View: 360 PDF Download: 65 |
||||
