Economic Growth, Foreign Direct Investment, and Privatisation in Egypt and China: Preliminary Results

Abstract

Over the past four decades, Egypt and China have exhibited high growth rates, though at varying speed. Both countries have gone through structural adjustment, liberalisation and privatisation programmes in the past years. In this paper, we aim to examine the effects of privatisation, and FDI, along other economic determinants, on the economic growth of China and Egypt over the period 1970s – 2010s; using cointegration and error correction model (ECM). The preliminary results indicate that privatisation and FDI seem to have significant effects on economic growth over the short run in China, while they affect economic growth in Egypt over the long-run.