Credit Rating as A Determinant of FDI Flows in Egypt | ||||
| المجلة العلمية للدراسات التجارية والبيئية | ||||
| Article 89, Volume 14, Issue 3, July 2023, Page 60-113 PDF (986.17 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/jces.2023.323246 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Ahmed Said Karam Elbokl* | ||||
| Lecturer of economics- Faculty of Politics & Economic – Suez university | ||||
| Abstract | ||||
| Domestic financing gap resulting from the lack of sufficient domestic savings to finance national investments, is one of the major economic problems in developing countries, putting these countries in the midst of a constant need for foreign capital in the form of direct or indirect investments. economic history indicates that the ability of the countries of the world to attract the optimal pattern of foreign direct investment, as it indicates that foreign investors do not risk their investments without studying the economic, political and social environment in the host country. this paper used analytical methods by analysis the data by using econometric models’ framework which it allows measure the impact of the credit rating for the FDI, by using the variables credit rating from the Moody’s agency and other variables such as credit GDP and Trade-GDP and gross fixed capital formulation growth rate, Exchange Rate as independent variable’s and FDI as Dependent Variable. This paper reach to the positive rate is insignificant in the short run and the negative rating is significant that’s mean the negative rate for the economy will decreasing the FDI to the Egyptian Economy (short Run) while the positive rating will not affect in the investment inflows. The variables such as (credit GDP) and (trade) are significant in the short run that mean the government should decreed the policies and procedures are related to trade and credit to attractive the FDI. Paper recommended to Introducing “Mixed-financing” approaches and risk transfer mechanisms such as “Export-Credit” and political risk insurance, where Mixed finance can stimulate investment by shifting some risk away from investors. such as Political Risk Insurance and Dispossession, wars, and civil unrest. | ||||
| Keywords | ||||
| FDI; Credit rating; Creditworthiness; GDP; Mixed-financing | ||||
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