Foreign direct investment and economic growth in Jordan: An empirical research using the bounds test for cointegration
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1 juin 2019
- handle: 10670/1.vlfm93
Ce document est lié à :
10.14718/revfmanzpolitecon.2019.11.1.4
info:eu-repo/semantics/openAccess
Mots-clés
FDI GDPP financial development elasticities JordanSujets proches
GDP Domestic product, Gross International investment Foreign investments Offshore investments Outward investments Capital imports Foreign direct investment Foreign investment Capital exports FDI (Foreign direct investment)Citer ce document
Mohammad SalemOudat et al., « Foreign direct investment and economic growth in Jordan: An empirical research using the bounds test for cointegration », Revista Finanzas y Política Económica, ID : 10670/1.vlfm93
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Résumé
This paper investigates both long-run and short-run elasticities between gross domestic product and foreign direct investment (FDI) in Jordan. Annual data have been used in order to explore the relationship between foreign direct investments (FDI) with economic growth for the period 1992-2013. Data were collected for both variables (FDI and GDP) from the World Bank and World Development Indicators, and the Autoregressive Distributed Lag Model (ARDL) approach was used. The results show long-run and short-run elasticities in foreign direct investment (FDI) and GDP The results indicate that Jordanian policy makers focus their efforts to attract more FDI to Jordanian economy. This is because more FDI is expected to lead to a decrease in economic obstacles in Jordan (e.g., increased level of investment, decreased unemployment rate). JEL: C10, E22, O47.