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Volume 1
Issue 1
Online publication date 2010-04-01
Title Determinants of direct foreign investment: Evidence from Jordan
Author Husni Ali Khrawish, Walid Zakaria Siam
Abstract In order to show the effect of direct foreign investment flows on the economy of Jordan, this study comes to examine the economic and financial risks on FDI on the macro level over the period (1997- 2007). This study applies a version of the model developed by Chan and Gemayel (2004) by using Multiple Linear Regression Model. The analysis revealed that there exists significant and positive relationship between foreign direct investment flows into the economy of Jordan and economic and financial variables. The study claims for further FDI promotion through incentives to attract new investments. These factors are: providing targeted fiscal incentives, such as tax concessions, cash grants, and specific subsidies; improving domestic infrastructure; promoting local skills development to meet investor needs and expectations; establishing broad-reaching FDI promotion agencies and improving the regulatory environment and decreasing red tape.
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Keywords Direct foreign investment, economic and financial risks, export of goods and services and exchange rate stability.
Pages 67-75
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