Advances in Management and Applied Economics

A Causal Relationship Between Foreign Direct Investment, Economic Growth and Export: Empirical Case For Jordan

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• Abstract

  The purpose of this research is to focus on the association among exports, economic growth, and foreign direct investment in Jordan. Predictions for economic growth effects were completed for the time interval from the first quarter in 2003 until the fourth quarter in 2013. Cointegration and Vector Error Correction paradigm were executed. Consequences of the research asserts the presence of long run association links among study variables. Conclusions show that exports influence GDP in a positive way, comparatively foreign direct investment has no effect on GDP. According to the methodology employed, the study confirmed a negative association of foreign direct investment on economic growth for the case of Jordan.