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Exploring the long-run and short-run elasticities between FDI inflow and its determinants in Jordan

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  • Hussain Ali Bekhet
  • Raed Walid Al-Smadi

Abstract

This paper investigates the long-run and short-run elasticities among Greenfield investment inflows, gross domestic product, energy consumption, economic openness, gross fixed capital formation, labour and financial development in Jordan. Annual time series data for the 1979-2012 periods and the ARDL bounding test are used. The results identify long-run and short-run elasticities in foreign direct investment (FDI) and its determinants. In general, Jordanian policy makers concentrate their efforts to attract more FDI by enhancing economic indicators and liberalising the financial market. This is because more FDI in the Jordanian economy is expected to lead to a decrease in economic obstacles (e.g., lower unemployment rate, increased level of technological and managerial skills and increased size of capital).

Suggested Citation

  • Hussain Ali Bekhet & Raed Walid Al-Smadi, 2017. "Exploring the long-run and short-run elasticities between FDI inflow and its determinants in Jordan," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 18(3), pages 337-362.
  • Handle: RePEc:ids:ijbglo:v:18:y:2017:i:3:p:337-362
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    Citations

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    Cited by:

    1. Raed Walid Al-Smadi & Muthana Mohammad Omoush, 2019. "The long-Run and Short-Run Analysis between Stock Market Index and Macroeconomic Variables in Jordan: Bounds Tests Approach," International Business Research, Canadian Center of Science and Education, vol. 12(4), pages 50-60, April.
    2. Muthana Mohammad Omoush, 2018. "Time Series Analysis among Tourism, Financial Development, FDI and Economic Growth in Jordan," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(12), pages 150-150, December.
    3. Mohamed Ibrahim Mugableh, 2019. "Fiscal Policy Tools and Economic Growth in Jordan: Evidence from Time-Series Models," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(1), pages 1-7, January.
    4. Bekhet, Hussain Ali & Latif, Nurul Wahilah Abdul, 2018. "The impact of technological innovation and governance institution quality on Malaysia's sustainable growth: Evidence from a dynamic relationship," Technology in Society, Elsevier, vol. 54(C), pages 27-40.
    5. Bekhet, Hussain Ali & Othman, Nor Salwati, 2018. "The role of renewable energy to validate dynamic interaction between CO2 emissions and GDP toward sustainable development in Malaysia," Energy Economics, Elsevier, vol. 72(C), pages 47-61.
    6. Hussain A. Bekhet & Ahmad Mohammad Alsmadi & Mohamed Khudari, 2020. "Effects of Internal and External Factors on Profitability of Jordanian Commercial Banks: Panel Data Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 359-375, October.

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