This study represents an attempt to investigate two issues, a) to find out the relationship between foreign direct investment (FDI) and the human development welfare (HD), b) to determine the causal-order between inward Foreign Direct Investment (FDI) and Human Development (HD) using a time series data set for Egypt over the period 1990-2013. The inflows of FDI to Egypt raise the question of how these inflows affect its human welfare in terms of the interaction between FDI and human development. Despite the fact, there is limited studies investigating the link between FDI and HD, the causality between them has not been investigated in a reasonable procedure. Empirical results obtained from time series analysis indicates that FDI Granger causes HDI, and it also indicates that FDI and HDI are adjusting to their long-run equilibrium relationship for the period 1990 - 2013. |
