الفهرس 
The Impact of Currency Devaluation on the Egyptian Stock Market Development And Foreign Direct & Indirect Investment
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Abstract
Purpose: The research will test empirically the impact of the Egyptian pound devaluation as well country risk variables on the Egyptian stock market performance, development, foreign direct investments and foreign portfolio investments in Egypt over the period 2002-2018. The study will be covering basically two devaluations; the first one took place on the 28th of January 2003 and the second one took place on the 3rd of November 2016. Country risk variables will be covering basically financial risk index, economic risk index and political risk index.
Design/methodology/approach: Two sets of variables, dependent and independent will be used in the study. Four dependent variables will be considered: (1) stock market development, (2) stock market performance, (3) foreign direct investments, (4) foreign portfolio investments Independent variables that will be considered include: (1) currency devaluation, (2) financial risk index, (3) economic risk index, (4) political risk index. An Autoregressive Distributed Lag cointegration (ARDL) analysis will be performed as a mean of testing both long term as well short term relationships among variables.
Regarding the ARDL analysis, the study variables will be measured by applying multiple proxies. Two proxies will be used to analyze the stock market development; stock market capitalization as percentage of Gross Domestic Product and stock market turnover ratio. In addition, two proxies will be used to analyze the Egyptian stock market performance; EGX- 100 as well as EGX-30. Data regarding these four proxies will be sourced from the Egyptian stock exchange official website as well as the Central Bank of Egypt (CBE) in the period from 2002 till 2018 on quarterly basis. Foreign Direct Investment as percentage of gross domestic product and foreign Portfolio Investments net flows (covering both investment in bonds as well investments in securities) will be considered in the research, data required will be obtained from the CBE and the ministry of planning.
Measuring the Egyptian pound devaluation requires collecting the nominal exchange rate during the same selected period between 2002 till 2018, which will be sourced from the CBE database. Finally, Country risk variables will cover the financial, political and economic risk indices and required data will be collected from the International Country Risk Guide: Political Risk Services (PRS) since 2002 till 2018 on quarterly basis