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The Impact of Foreign Direct Investment and Imports on Economic Growth The Case of Jordan

The Impact of Foreign Direct Investment and Imports on Economic Growth The Case of Jordan This study aims to measure and analyze the impact of both Foreign Direct Investment FDI and Imports M on the Economic Growth EG of Jordan, over the period 19762003. To achieve this, a production function was utilized by using FDI and Imports as two distinct factors among other factors of production. This study examines the relationship between variables FDI, M and EG through Vector Autoregression VAR. The estimated results indicate the existence of bidirectional relationships between FDI and output, and between imports and output as well. The same bidirectional causal relationship exists also between FDI and imports. The results show that FDI affect human capital indirectly through gross domestic output, while, on the other hand, human capital affect FDI indirectly through domestic capital and imports. The results emphasize and support the FDI and importLed Growth Hypothesis for Jordan. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic and Administrative Sciences Emerald Publishing

The Impact of Foreign Direct Investment and Imports on Economic Growth The Case of Jordan

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1026-4116
DOI
10.1108/10264116200700001
Publisher site
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Abstract

This study aims to measure and analyze the impact of both Foreign Direct Investment FDI and Imports M on the Economic Growth EG of Jordan, over the period 19762003. To achieve this, a production function was utilized by using FDI and Imports as two distinct factors among other factors of production. This study examines the relationship between variables FDI, M and EG through Vector Autoregression VAR. The estimated results indicate the existence of bidirectional relationships between FDI and output, and between imports and output as well. The same bidirectional causal relationship exists also between FDI and imports. The results show that FDI affect human capital indirectly through gross domestic output, while, on the other hand, human capital affect FDI indirectly through domestic capital and imports. The results emphasize and support the FDI and importLed Growth Hypothesis for Jordan.

Journal

Journal of Economic and Administrative Sciences – Emerald Publishing

Published: Jun 1, 2007

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