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

Hussain A. Bekhet, Raed Walid Al-Smadi

Research output: Contribution to journalArticle

6 Citations (Scopus)

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).

Original languageEnglish
Pages (from-to)337-362
Number of pages26
JournalInternational Journal of Business and Globalisation
Volume18
Issue number3
DOIs
Publication statusPublished - 01 Jan 2017

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Jordan
Short-run
Foreign direct investment
Elasticity
Labor
Gross domestic product
Economic indicators
Greenfield investment
Managerial skills
Financial markets
Unemployment rate
Economics
Financial development
Autoregressive distributed lag model
Capital formation
Energy consumption
Time series data
Fixed capital
Economic openness
Politicians

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)

Cite this

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Exploring the long-run and short-run elasticities between FDI inflow and its determinants in Jordan. / A. Bekhet, Hussain; Al-Smadi, Raed Walid.

In: International Journal of Business and Globalisation, Vol. 18, No. 3, 01.01.2017, p. 337-362.

Research output: Contribution to journalArticle

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