Table of Contents
Introduction
The foreign investment means the investment that is owned and managed by the foreign investor, either because of the ownership of his share, he has the right to enter, the foreign direct alliance in a double form, the first: the existence of an economic activity carried out by the foreign investor in the host country; and second: the total or partial ownership of the project,There is no doubt that foreign direct investment has developed globally significant and has become the most important tools of funding for investment in developing countries.
In view of what ails the exports of most developing countries have great difficulties to gain access to global markets, which has a comparative advantage traditionally fall in the primary sector and industry-intensive resources and manpower, so it has used most of the developing countries b FDI as a source of external funding, and because it represents FDI of relative stability compared with the rest of the other sources of funding where it enters into the production process, service and the magnitude of the advanced technologies and managerial skills and marketing, which leads to raise productivity and improve product quality and thus raise the competitiveness of exports of those countries.
Direct online forecasts and their work to improve the economy of the Middle East and progress in the flow of external direct interest in the economy have seen a significant increase in the flow of external direct projects in recent years. This is due to the many estimates made at the large scale level that have led to a change in the atmosphere of speculation. These changes, particularly in the promotion of speculative techniques, have led to an increase in the number of organizations established and the expansion of existing organizations. This led to a rise in net currents of the remote direct project.
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It is clear that we build the long-term trend of speculation between 2001 and 2009 until it reached about 71% of the total foreign direct investment flows from 1975 to 2009, due to the official changes identified. External Outflow Ratio of External Considerations in Various Periods Despite the expansion of the relative supply of the global direct remote project, many of the external external characteristics of the places are low as opposed to many countries in the Middle East and the Middle East. ). Sectoral distribution of foreign direct investment in the Egyptian economy The sectoral transport of remote speculation in the period 2004-2007 has been changed to build new organizations and develop existing ones after coordinating the bulk of these projects.
Oil division, In Arab Countries
Industry sector, a lot of direct remote projects: the modern section was placed second after department of departments in FDI flows. The normal annual inflow rate of direct foreign speculation expanded from 16.4% in 1975-1979 to 48.8% in 1985-1989. The rate then decreased to 33.3% and then shrunk. This rate was 28.2% in the period 2000-2009. Despite the fact that the commercial segment is the main part of monetary progress, the external interest in this area was not as high as was required. It is clear that the modern segment is second only to the administrations area in relation to the direct foreign direct investment flows. This trend reached a peak in 2007, where the level of interest in the modern segment accounted for 46.7% of total interests in remote projects. This year, the current volume reached its lowest level in 2002, but the flow rate to reach currents was about 47.32%
The Impact of Foreign Direct Investment on the Industrial Sector
In considering the impact of the direct remote project on the modern region, information on the extent of mechanical return and foreign direct investment flows will be used in the modern section during the period (1986-2009). The survey explains the accompanying structure: Log master = α + βlogFdi + u where the log log indicates the current yield block at the current cost after the logarithm is entered. The FDI record similarly indicates the size of the remote interests in the Business pane. Arrange the time used to maintain a strategic distance from the misguided relapse. Ie a false slant so we will use the Dickey-Fuller test to pass the sentence on regardless of whether the single root is available. In light of the effects of the test, both the modern yield and the magnitude of interests in the mechanical division do not suffer from the bad effects of the single root issue, because the ADF estimate is more worthwhile than the basic qualities and later the model factors are constant.
The model estimate depends on the OLS strategy. After the estimate, the results were as follows: Log Star = 22.311 + 0.297log FDI value = (0.000) (.00244) The previous model illustrates a critical positive relationship between mechanical yield and remote interest flow. This segment, when the 95% sure level, if direct external attention in the modern area has expanded by 1%, the modern generation will increase by 0.3%. This project has a positive impact on modern creativity in Egypt. This is due to innovation innovation focused data with external specifications, especially in the mechanical section. It is possible to estimate the smallest squares, but after finding the first difference in the service sector output, after the estimate the results were as follows:
Loglogservices = -0.55 + 0.08891
(T) Calculated (-3.06) (3.464)
P.value (0.0120) (0.0061)
The results of the assessment show the positive impact of FDI on the growth of the services sector. If foreign direct investment in the services sector increases by 1%, the value of the services sector will increase by 0.09%
Foreign direct investment through multinational organizations that a standout amongst the best advantages anticipated from this kind of investment is the exchange of know-how and the restriction of present day innovation and progressed, notwithstanding supporting innovative work, particularly in creating nations. Regardless of the capacity of creating nations to get to present day innovation through a few channels, foreign direct investment through multinational organizations is extraordinary compared to other approaches to obtain current innovation, since this kind of organization has the methods and the colossal monetary implies that enable it to spend vast On innovative work ventures, and in addition their capacity to move effortlessly and effectively crosswise over worldwide outskirts. For instance, the quantity of multinational organizations in 2009 came to around 82 thousand organizations. The benefits of these organizations were evaluated at $ 77.1 trillion, and the GDP of organizations added up to about $ 5.8 trillion in a similar period.
One of the primary targets of drawing in foreign cash-flow to put resources into the Kingdom is the exchange of innovation and the confinement of innovation. Alluding to the foreign investment administration of 1979, we find that all together for a foreign speculator to acquire a permit from the Minister of Commerce and Industry, he should put resources into advancement extends and be joined by specialized and foreign ability. Article (3) of the Executive Regulations of the General Authority for Investment (2000) stipulates that the Authority will be skillful to deal with investment undertakings in the Kingdom and will set up the State’s arrangements in the field of advancement and increment of local and foreign investment and submit them to the Council. Exchange and confinement of innovation ‘.
KIA’s endeavors in the course of recent years have expanded the capacity of the Saudi economy to draw in extensive foreign capital through enhanced business condition. As indicated by information issued by the Authority in 2010, the Kingdom has pulled in about $ 35.5 billion out of 2009, making it the eighth biggest on the planet in drawing in foreign direct investment. Here we can make the inquiry: Has the Saudi economy profited from these investments as far as innovation exchange and resettlement? To answer this inquiry we should initially know the wellspring of these investments, it is incomprehensible that every investment conveys the most recent in the most recent innovation. By reference to similar information, around 33 for each penny of aggregate foreign direct investment streams in 2009 originate from Arab nations.
The United Arab Emirates (after the United States) was the second biggest speculator in the Kingdom at $ 3.8 billion subsequent to being the main financial specialist in 2008. Here we confront the inquiry: do these investments convey the learning and innovation required by the administration to exchange and settle them through the authorization of the foreign investment framework Direct? What do Arab nations have regarding learning, innovation, authoritative and hierarchical strategies that the Kingdom does not have? Nobody questions that the Saudi economy has gone far in utilizing the cutting edge innovation in the generation procedure to coordinate what is utilized in the neighboring nations.
Consequently, the advantage (acquiring learning and administration mastery and the confinement of present day and cutting edge innovation) from these investments to build effectiveness and increment generation profitability Has not appeared, and maybe there has been a misuse of monetary and money related assets as a result of the favorable circumstances and motivators given to the foreign financial specialist. As I would see it, it is the ideal opportunity for GAFI to center around the quality and nature of foreign direct investment as far as the additional monetary esteem it will add to the Saudi economy. There are some examples of some fields in economics that gained benefits from foreign direct investment.
The Impact of Foreign Direct Investment on the Balance of Payments
The effect of foreign direct investment on the host nation’s parity of installments can be accomplished through a few channels. The first is through the positive effect on the capital record of the equalization of installments in which foreign direct investment streams are recorded as an expansion toward the start of the stream of such host investments ‘direct or beginning effect’. Also the second by impacting the exchange parity of the host nation as far as development of exchange «exports and imports» with the nations of the world.
The third is exchanges of profits and managerial expenses, eminences and sovereignty charges paid by the backup of the parent organization in return for the privilege to utilize the name, logo, working arrangement of the parent organization and different things identified with foreign investments from the host nation, accordingly unfavorably influencing the parity of installments. Advocates of foreign investment accept that the capacity of FDI to get to world markets will change the host nation’s outer exchange structure as far as expanding its fare limit and attacking new markets, in this way helping it to enhance its exchange balance. This impact will exceed the negative effect of capital and the nation is outward.
The Impact of Foreign Investment on the Labor Market
The effect of foreign direct investment (FDI) on the work showcase is regularly talked about as far as its effect on making new occupations, expanding wages and raising work profit ability. The effect of foreign direct investment on the making of new employments in the host nation’s work showcase isn’t perceived and may prompt expanded joblessness. From one viewpoint, there are a few speculations that foreign direct investment assumes a critical job in diminishing the issue of joblessness in the host nation through direct work in foreign ventures, and also indirectly through expanded business openings in the residential front and back-end enterprises. Be that as it may, this impact depends vigorously in transit FDI is made.
On the off chance that it is built up, it will without a doubt make new employments. On account of mergers and acquisitions, this sort of investment may prompt an expansion in the joblessness rate as the new organization looks to lay off a few specialists due to the innovation utilized or to supplant neighborhood laborers with foreign ones. This effect likewise relies upon the part in which FDI works. For instance, foreign direct investment in the administration segment may not make occupations, for example, the work serious modern segment.
