The Impact of External Shocks on Foreign Direct Investment in Jordan (1995–2020)

Majd Ibrahim AlZboon ()
Additional contact information
Majd Ibrahim AlZboon: Al Al-Bayt University

A chapter in Innovative Law and Business in the Digital Era, 2025, pp 21-31 from Springer

Abstract: Abstract The study aimed to shed light on the impact of external shocks represented by foreign aid, oil prices, and remittances of workers abroad on foreign direct investment in Jordan during the period of 1995–2020 and present a set of recommendations that would enhance the positive effects of those external shocks. On foreign direct investment, and to achieve the goal of the study, this study relied on the descriptive analytical approach using the standard method, using unit root tests, time series stability tests for study variables, and autocorrelation test. The study shows that there is a negative and moral impact of oil prices on foreign investment in Jordanian direct investment, as well as the presence of a positive and moral impact of foreign aid on foreign investment in Jordan, as shown by the value of the coefficient of determination that 20% of the variables in Jordanian foreign investment are due to independent variables (oil prices, foreign aid), and the study focus on Searching for alternative sources of oil or buying oil at a time when its prices are low, which will reflect positively on foreign direct investment and the search for various sources of foreign aid in a way that contributes to improving foreign investment.

Keywords: External shocks; Foreign direct investment; Foreign direct investment (FDI); External shocks; Economic shocks; Jordan economy; Political instability (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-96-5773-5_3

Ordering information: This item can be ordered from
http://www.springer.com/9789819657735

DOI: 10.1007/978-981-96-5773-5_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().