The Impact of Investment Environment Factors on Foreign Direct Investment in Jordan: An Econometric Study 2000-2023.

Alia’a Salman TaJab Abu-AJim; Torki M. AJ-Fawwaz

doi:10.25259/JAES_18_2_433

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Research Article

18 (

); 433-457

doi:

10.25259/JAES_18_2_433

The Impact of Investment Environment Factors on Foreign Direct Investment in Jordan: An Econometric Study 2000-2023.

Alia’a Salman TaJab Abu-AJim, Torki M. AJ-Fawwaz

Finance and Economic Dept., faculty Business, Al al-Bayt University, Jordan

Published: 2025-10-16

Licence

This is an open-access article distributed under the terms of the Creative Commons Attribution-Non Commercial-Share Alike 4.0 License, which allows others to remix, transform, and build upon the work non-commercially, as long as the author is credited and the new creations are licensed under the identical terms.

Disclaimer:
This article was originally published by Qassim University and was migrated to Scientific Scholar after the change of Publisher.

Abstract

This study aimed to examine the impact of investment environment factors on foreign direct investment (FDI) in Jordan during the period 2000-2023. Specifically, it investigated the effects of economic growth, inflation rate, political stability, and workers' remittances on FDI using the descriptive and analytical approach based on the Autoregressive Distributed Lag (ARDL) model.

The study found a statistically significant positive impact of both economic growth and workers' remittances on FDI in Jordan. Conversely, it identified a statistically significant negative impact of inflation and political stability on FDI. Based on these findings, the study recommends the formulation of strategies to attract more foreign investments, which, in turn, contribute to increasing GDP by expanding development and capital projects that create job opportunities for Jordanians. Additionally, the study emphasizes the importance of improving Jordan’s infrastructure, as it serves as a fundamental pillar for attracting both foreign and domestic investments.