The Effect Of Foreign Direct Investment On Economic Growth In Jordan

Abstract

The aim of this study is to analyze the effect of Foreign Direct Investment on economic growth in Jordan during the period of 1976-2017. This study employs secondary quarterly data consisting of gross domestic product growth, Foreign Direct Investment, export, domestic investment, and  labor force obtained from World Bank’s website. Error Correction Model was applied in this study. This research emphasize the presence of long-run association links between the variables. The result of the analysis shows that foreign direct investment, domestic investment, and export have significant effects on economic growth in Jordan and that labor force has no significant effect on economic growth  in the country. This study suggests expansion of human capital development and trainings for labor force through investments in education and training.