The impact of Economic liberalization on the flow of private foreign investment can have different impacts on specific regions. One common perspective is that economic liberation on the one hand can be beneficial for the developed countries but on the other hand it can actually harm the domestic economy of developing nations. This paper will therefore analyze the impact that economic liberalization had on the flow of private foreign investment in Egypt. In order to do that this paper will start out by taking a look at both private foreign investment and economic liberalization in order to understand the concepts in question.
The second part of the paper will analyze the theory of economic liberalization in which two perspectives are elaborated on, one being that which is for economic liberation and the other against. The third part of the paper will look at the Infitah process that took place in Egypt and the final section will look at the economic liberalization and its impact on private foreign investment in Egypt through the prism of the theory discussed earlier.
[...] Analyzing the case of Egypt in terms of economic liberalization will allow us to conclude if its outcomes had any impact on the private foreign investment of the country. INFITAH in Egypt The term “Infitah” is used as a broad term in order to describe economic liberalization in the Arab world, this keeping in mind that it was first used within the context of Egypt. In “A Story of Infitah: Egyptian Liberalisation under Stress,” Hamza Ates, Mehmet Duman and Yuksel Bayraktar claim that in the environment of changed political and economic situation after the October War of 1973, the principles of a new strategy were put forward in Sadat's “October Working Paper,” and this focused on the liberalization process that were to take place in Egypt. [...]
[...] The argument that we have been tackling since the beginning stems from the fact that economic liberalization is not beneficial in terms of private foreign investment for a country like Egypt. Private foreign investments tends to take place at an elite level and therefore ends up hurting the middle/lower class. In the 1990's Egypt did in fact go through political policies and these mainly include the collaboration with the World Bank and the IMF under what is known as the Structural Adjustment Program. [...]
[...] This paper will therefore analyze the impact that economic liberalization had on the flow of private foreign investment in Egypt. In order to do that this paper will start out by taking a look at both private foreign investment and economic liberalization in order to understand the concepts in question. The second part of the paper will analyze the theory of economic liberalization in which two perspectives are elaborated on, one being that which is for economic liberation and the other against. [...]
[...] An Examination of Economic Liberalization Impact on Foreign Direct Investment in Selected Developing Countries. International Conference on Business and Economics Research. Saddik, I. (1995). Credit and Investment in Egyptian Agriculture: Future Perspectives in the Light of the Economic Liberalization Policies. Faculty of Agriculture: Menoufeya University, Cairo. Stiglitz, J. E; Ocamo, J. A; Spiegel, S; Ffrench-David, R; Nayyar, D. (2006). Stability with Growth: Macroeconomics, Liberalization, and Development. New York: Oxford University Press. Waterbury, J. (1985). The “Soft State” and the Open Door: Egypt's Experience with Economic Liberalization, 1974-1984. [...]
[...] A Story of Infitah: Egyptian Liberalisation Under Stress. Blair, T. (n.a). Complaining about globalization is as pointless as trying to turn back the tide. Asian competition can't be shut out; it can only be beaten. And now, by every relative measure of a modern economy, Europe is lagging. Newsweek. Ebrahim, A. M. (n.a). The Growth Effects of Financial Liberalisation Programme in Egypt: Development and Drawbacks. Faculty of Commerce and Business Administration: Helwan University. Eid, N. M. (2007). Financial Integration in Egypt: “A Laugh to Keep From Crying.” Faculty of Economics & Political Sciences: Cairo University. [...]
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