External Shocks and Foreign Investment in Jordan

Majd Ibrahim AlZboon ()
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Majd Ibrahim AlZboon: Al Al-Bayt University

A chapter in Innovative Law and Business in the Digital Era, 2025, pp 45-53 from Springer

Abstract: Abstract The Jordanian economy has been significantly impacted by external shocks over the past decades, including the 1988 economic crisis, the Gulf War, the 2008 global financial crisis, the Arab Spring, and the COVID-19 pandemic. This study examines the interplay between these shocks and foreign investment trends in Jordan, focusing on the period from 1995 to 2020. It highlights how Jordan’s limited natural resources and reliance on foreign aid have shaped its economic resilience and susceptibility to global and regional disruptions. The analysis explores the evolution of foreign direct investment (FDI), foreign aid, worker remittances, and oil price fluctuations, assessing their collective impact on the country’s economic stability and growth. Results indicate that while periods of political stability and reform fostered investment inflows, crises often led to sharp declines in FDI, exposing vulnerabilities in Jordan’s economic structure. The study concludes with policy recommendations for enhancing economic resilience and attracting sustainable investments in the face of external shocks.

Keywords: Jordanian economy; External shocks; Foreign direct investment; Foreign aid; Remittances (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-5773-5_5

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DOI: 10.1007/978-981-96-5773-5_5

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