The impact of foreign direct investment on exports in Jordan: An empirical analysis

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Mukhtarov S., Alalawneh M. M., Ibadov E., Huseynli A.

Journal of International Studies, vol.12, no.3, pp.38-47, 2019 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 12 Issue: 3
  • Publication Date: 2019
  • Doi Number: 10.14254/2071-8330.2019/12-3/4
  • Journal Name: Journal of International Studies
  • Journal Indexes: Scopus
  • Page Numbers: pp.38-47
  • Keywords: ARDL, Exports, Foreign direct investment, Jordan
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study investigates the impact of foreign direct investment (FDI) on exports in the case of Jordan, employing Autoregressive Distributed Lag Bounds Testing (ARDL BT) cointegration approach to the data ranging from 1980 to 2018. The results indicate that there is a long-run relationship among the variables. Also, we find that there is a positive and statistically significant impact of FDI on export in the long-run. The estimation results indicate that a 1% increase in FDI increases exports by 0.13%.