MNEs as catalysts of productive entrepreneurship: the case of Egypt

Foreign direct investments (FDI) towards developing economies have grown to such an extent that today, among the top ten FDI recipients in the world, five are developing economies (UNCTAD, World Investment Report, 2020). Economics and management literature has long recognized that, under certain circumstances, multinational enterprises (MNEs) play a crucial role in fostering local economic development. While some scholars have shown optimism regarding the impact of MNEs on developing countries (see, among others, Caves, 1974; Teece, 1977; Anwar & Nguyen, 2011), others have proven to be skeptical (see, among others, De Backer & Sleuwagen, 2003; Haddad & Harrison, 1993; Agosin & Machado, 2005). Despite the inconclusiveness of literature, the 2030 Agenda of the United Nations assigns a special role to MNEs for local economic development when it states that “private business activity, investment and innovation are major drivers of productivity, inclusive economic growth and job creation,” and calls upon MNEs, along with other businesses, “to apply their creativity and innovation to solving sustainable development challenges.”