Determinants of Jordanian foreign direct investment inflows: Bounds testing approach

Hussain Ali Bekhet and Raed Walid Al-Smadi

Economic Modelling, 2015, vol. 46, issue C, 27-35

Abstract: This study aims to evaluate the long-run and short-run relationships among foreign direct investment (FDI) inflows and their determinants in Jordan for the (1978–2012) period. The bounds testing approach is used to analyze the long-run and short-run relationships among the variables. However, the Granger causality test is utilized to explore the directions of causality among the variables. The results identify that there are long-run and short-run relationships among FDI and its determinants. Moreover, the Granger causality test recommends a deferent causal relationship among FDI and their determinants. In general, the Jordanian policy makers have to be aware to the importance of inward FDI in the Jordanian economy.

Keywords: FDI inflows; Macroeconomic variables; Stationary; Causality; Equilibrium relationship; Jordan (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999314004994
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:46:y:2015:i:c:p:27-35

DOI: 10.1016/j.econmod.2014.12.027

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().