The research presents a comparative study of Libya and Egypt. Both are developing economies in North Africa, and both have adopted FDI and TT as ways to enhance economic development and economic structure in the countries. The purpose of this study is to investigate the key success factors impacting foreign direct investment (FDI) and technology transfer (TT) from the perspective of governments of the host countries .\ud
The investigation applies a questionnaire survey method for primary data collection from firm managers in the two countries. Data were collected from representatives of firms with FDI and TT in Libya and Egypt. The matched samples comprise 149 firms in both Libya and Egypt, so that key economic sectors could be covered in the two countries. This research also uses data collected from secondary sources such as government reports, documents and government websites.\ud
The results were strongly impacted by host government policy in the process of FDI and TT. A number of factors were identified as being important in the process of FDI and TT, these factors are divided into two groups: manageable factors such as policy, level of education, skill of labour and so on and unmanageable factors such as availability of natural resources, location and the climate of the host country .The created framework has broad significance and can be applied for the evaluation of the role of FDI and TT in the evolution of the economic structure of a country