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The Impact of Turning Jordan into an Economic Free Zone on the Flow of Foreign Investments

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  • Ahmad Y. Areiqat
  • Hanan Ibrahim

Abstract

Purpose- The purpose of this study is to show that turning Jordan into an economic free zone will lead to a significant increase in foreign investments. This increase, in turn, will lead to an economic growth and to a reduction in the unemployment rate. Jordan is a developing country and any successful investments in the economy sector will have a positive impact on the quality of the social life of its people. This is particularly important now in view of the economic pressure that Jordan is going through as a result of the presence of a huge number of immigrants who have fled the civil wars in neighboring countries. Methodology- This study has utilized the relevant literature by way of evaluating the benefits of establishing economic free zones in Jordan. Many of the findings are based on analyzing statistical information published by governmental institutions in Jordan. Findings- Jordan offers an attractive investment environment due to the security and stability it enjoys compared with other countries in the Arab region. As such, it has succeeded in establishing new economic free zones through partnership with foreign investors. This has led to a significant increase in the flow of more foreign investments in Jordan. The present study shows that turning the whole of Jordan into an economic free zone will lead to yet a further increase of foreign investments, and hence to more empowerment of the economic sector. Limitations- The quantitative data available is limited to the years 1999-2007. Value- The findings of this study can be a point of departure for researchers and economic decision-makers in Jordan to prepare economic plans with the purpose of attracting foreign investments and hence promoting economic growth in the country.

Suggested Citation

  • Ahmad Y. Areiqat & Hanan Ibrahim, 2021. "The Impact of Turning Jordan into an Economic Free Zone on the Flow of Foreign Investments," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(12), pages 1-61, July.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2021:i:12:p:61
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    References listed on IDEAS

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    1. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    2. Al-Yaseen, Hussein & Eldabi, Tillal & Lees, David Y. & Paul, Ray J., 2006. "Operational Use evaluation of IT investments: An investigation into potential benefits," European Journal of Operational Research, Elsevier, vol. 173(3), pages 1000-1011, September.
    3. Peter Debaere & Joonhyung Lee & Myungho Paik, 2010. "Agglomeration, backward and forward linkages: evidence from South Korean investment in China," Canadian Journal of Economics, Canadian Economics Association, vol. 43(2), pages 520-546, May.
    4. Paul Romer, 2010. "Technologies, Rules, and Progress: The Case for Charter Cities," Working Papers id:2471, eSocialSciences.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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