The Impact of Investment Environment Factors on Foreign Direct Investment in Jordan: An Econometric Study 2000-2023.

This study aimed to examine the impact of investment environment factors on foreign direct investment (FDI) in Jordan during the period 2000-2023. Specifically, it investigated the effects of economic growth, inflation rate, political stability, and workers' remittances on FDI using the descriptive and analytical approach based on the Autoregressive Distributed Lag (ARDL) model. The study found a statistically significant positive impact of both economic growth and workers' remittances on FDI in Jordan. Conversely, it identified a statistically significant negative impact of inflation and political stability on FDI. Based on these findings, the study recommends the formulation of strategies to attract more foreign investments, which, in turn, contribute to increasing GDP by expanding development and capital projects that create job opportunities for Jordanians. Additionally, the study emphasizes the importance of improving Jordan’s infrastructure, as it serves as a fundamental pillar for attracting both foreign and domestic investments.

Authors

Publication Details

Journal
Journal of Administrative and Economic Sciences
Published
2025-10-16
DOI
https://doi.org/10.25259/jaes_18_2_433
Primary Topic
International Business and FDI
Type
article
Field-Weighted Citation Impact
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article

The Impact of Investment Environment Factors on Foreign Direct Investment in Jordan: An Econometric Study 2000-2023.

Alia’a Salman TaJab Abu-AJim, Torki M. AJ-Fawwaz
Journal of Administrative and Economic Sciences
International Business and FDI
article

The Impact of Investment Environment Factors on Foreign Direct Investment in Jordan: An Econometric Study 2000-2023.

Alia’a Salman TaJab Abu-AJim, Torki M. AJ-Fawwaz
article en

Abstract

This study aimed to examine the impact of investment environment factors on foreign direct investment (FDI) in Jordan during the period 2000-2023. Specifically, it investigated the effects of economic growth, inflation rate, political stability, and workers' remittances on FDI using the descriptive and analytical approach based on the Autoregressive Distributed Lag (ARDL) model. The study found a statistically significant positive impact of both economic growth and workers' remittances on FDI in Jordan. Conversely, it identified a statistically significant negative impact of inflation and political stability on FDI. Based on these findings, the study recommends the formulation of strategies to attract more foreign investments, which, in turn, contribute to increasing GDP by expanding development and capital projects that create job opportunities for Jordanians. Additionally, the study emphasizes the importance of improving Jordan’s infrastructure, as it serves as a fundamental pillar for attracting both foreign and domestic investments.

Journal of Administrative and Economic SciencesVol. 18
Openalex Percentile: Top 57%
International Business and FDI
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