Are Technological Innovation and Foreign Direct Investment a Way to Boost Economic Growth? An Egyptian Case Study Using the Autoregressive Distributed Lag (ARDL) Model

Both technological innovation and foreign direct investment have received widespread attention in the literature on their role promoting economic growth. Therefore, this study aims to test relationship between investment, innovation, growth of Egyptian economy during period 1990–2019 using autoregressive distributed lag model simultaneous integration test. Our findings show ARDL (Autoregressive Distributed Lag) estimation a joint complementary rate per capita gross domestic product (GDP) US dollars independent variables long short term, which are statistically significant results. We found positive incoming share total capital formation inflation index had negative impact term speed adjustment towards equilibrium was very large, as it estimated at 1.5 years (1/0.651). Furthermore, also provides valuable lessons strategic vision for government, aspires advance technology attract more investment.