Impact of Foreign Direct Investment on Economic Growth in Jordan

Abstract

Jordan has adopted various policies to engage foreign direct investment in light of the country's urgent need to increase economic resources, thus providing many investment opportunities for foreign investors. There is no doubt according to most studies the foreign direct investment contributes to increase economic growth rates. This paper focuses on the impact of foreign direct investment on economic growth in Jordan for the period from 2000 to 2017. Using the EViews program, relying on a set of macroeconomic variables, and using the standard analytical approach, the paper aims to identify the impact of foreign direct investment on economic growth. The paper found a positive impact of foreign investment on economic growth. Based on this result, the ultimate goal of the Jordanian government is to seek to attract more foreign direct investment to increase the rate of economic growth.