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The Impact of International Capital Flows on Jordan’s Economic Growth

Author

Listed:
  • Basem M. Lozi*

    (Dept. of Finance Full Professor Al-Balqa Applied University, Jordan)

  • Mamoun Shakatreh

    (Dept. of Finance Associate Professor Al-Balqa Applied University, Jordan)

Abstract

The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.

Suggested Citation

  • Basem M. Lozi* & Mamoun Shakatreh, 2019. "The Impact of International Capital Flows on Jordan’s Economic Growth," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 5(9), pages 214-220, 09-2019.
    • Handle: RePEc:arp:ijefrr:2019:p:214-220
    as

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    References listed on IDEAS

    as
    1. M.M. Metwally, 2004. "Impact of EU- FDI on Economic Growth in Middle Eastern Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 121-132.
    2. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
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