scholarly journals Effect of International Direct Investments on Jordan’s Economy

2019 ◽  
Vol 14 (2) ◽  
pp. 48
Author(s):  
Abdul Aziz Saymeh ◽  
Marwan Mohammad Abu Orabi

The main objective of this research concerns the detailed information advocated by data to the latest developments in the volume of external investments in the Kingdom and their effects on Jordan’s economic growth. The study problem stems from the challenges facing the national economy in general and the role of none Jordanian investments and their effect on upgrading the national economic growth. In this study, researchers have used the descriptive analytical methods through the financial and economic reports and other relevant information available in the annual reports and publications issued by the financial institutions via measuring the effect of international direct investment(IDI) in boosting the national gross domestic product(GDP) in Jordan for 2005-2015 period. Research hypotheses were tested by using Pearson’s correlation formula (IDI) and (GDP). The correlation negative (inverse). Analysis results revealed that the correlation between these investments are not linked to its (GDP) alone, thus, researchers have attributed it to several other variables which might have greater impact on GDP and recommend that Jordan should develop long-term strategies for investments in several productive areas characterized by investment sustainability, rather than directing investments to short-term areas seeking rapid profits. Also taking advantage lessons of successful countries in attracting foreign investments such as Malaysian, Korean and Thai experiences and should encourage specialized studies to examine further variables that might have strong impacts on Jordan's economic growth.

Media Ekonomi ◽  
2016 ◽  
Vol 24 (1) ◽  
pp. 63
Author(s):  
Fajar Bimantoro ◽  
Mona Adriana S

<em>The present study aimed to analyze the relationship between the level of foreign direct investment to Indonesia's economic growth in the period 1991-2014.Fokus of the present study was to analyze the short-term relationship between foreign direct investment and economic growth Indonesia. In addition, along with the financial crisis 2008 global bit much negative of Indonesia affected by the global economic slowdown due to the crisis. This prompted the present study was to also perform forecasting of the impact of global financial crisis on foreign direct investment and relation to economic growth. To answer these questions, this research chose VAR Vector Auto Regression or as a method to answer the research questions. Gross Domestic Product (GDP), Consumer Price Index, BI rate, and the Exchange Rate, the variables used in this research. The estimation results of the VAR indicate that direct investment from abroad did not have an impact on economic growth in the long term but has a strong bond in the short term against the growth of economics. This indicates that foreign investment into Indonesia increasingly quality in promoting economic growth. In addition, the results of forecasting using impulse response function indicates there will be the tendency of a decrease in the level of foreign direct investment and economic growth in Indonesia.</em>


Author(s):  
Adel Bogari

The purpose of this paper is to assess the effects of the financial development and the financial institutions quality on the economic growth for the Saudi Arabia. Using generalized Method of Moments (GMM) with a dynamic panel framework, this paper employs different measures of financial development namely the Liquid liabilities (LIQ), Private credit by deposit money banks and other financial institutions (CRE) and Central bank assets (ASS), and for financial institutions quality including socioeconomic conditions, investment profile, law and order, corruption, external conflicts and democratic accountability. For the period (1990-2017), our findings strongly support the hypothesis that financial development leads to growth in the Saudi Arabia. Moreover, empirical results support a positive and significant relationship observed between financial institutions quality and growth. The findings of this paper suggest the need to give more support to the financial development for Saudi Arabia banking that have been launched in the country since the last three decades and to improve the role played by the financial institutions to stimulate saving/investment and, consequently, long-term economic growth.  


2016 ◽  
Vol 12 (2) ◽  
pp. 32
Author(s):  
Asma Rashki Kemmak

<p class="a"><span lang="EN-US">The most important factors in the economic production subordinating, are work force and human capital. These factors and their functions depend on the role of hygiene, individual health and related index in improving the economy of a country. Therefore, one economic growth stimulating factor can be evaluated by using health index thorough effecting labor and human capital. Accordingly, this paper tries to study the effect of health index on economic growth during 1975 to 2012 and it does this by self-explanatory approach with distributed lag (ARDL) and the estimated long-term and short-term effects of these measures on economic growth. Results show the fact that health index related variables like fertility rate, life expectancy will bring economic index and capital growth increasing and it leads to more economic growth. These results are available in long-term and short-term period.</span></p>


2017 ◽  
Vol 6 (2) ◽  
pp. 103
Author(s):  
Ririn Martini Rezki ◽  
Yeniwati Yeniwati ◽  
Mike Triani

This research to analyze the influence of macro economic variables impact on Chinese Foreign Direct Investment in Indonesia. The influence of China’s economic growth, Indonesia’s economic growth, interest rates, inflation and exchange rates against Foreign Direct Investment (FDI) China in Indonesia in the long term and short term. Type of this research is descriptive research, the secondary data use form time series data, from 2001Q1 – 2016Q4, taken  from agencies and related institution, the analysis using the Ordinary Least Square (OLS) and Error Correction Model (ECM) to see the influence in a long term and impact in the short term. This research show that Indonesia’s economic growth of China’s economic growth and inflation is have a significant effect in the long term Chinas’s FDI in Indonesia. Variable economic growth of Indonesia’s, interest rates, inflation, exchange rate in the short term influence China’s Foreign Direct Investment in Indonesia. How ever in the long term interest rates and exchange rate do not influence significantly, to China’s FDI in Indonesia.


2009 ◽  
Vol 8 (3) ◽  
pp. 113-137 ◽  
Author(s):  
Bhanupong Nidhiprabha

Globalization leads to the increasing complexity of production networks through foreign direct investment, which transmits demand shocks from the rest of the world to the Thai economy. Short-term fiscal stimulus would not be able to shorten the length of recession unless consumer confidence is restored. Violation of established social obligations and contracts erodes business sentiment and eventually would lead to a negative long-term impact on economic growth. The duration of the recession and the speed of a recovery hinge on the government's ability to restore confidence during uncertain times.


2020 ◽  
Vol 6 (2) ◽  
pp. 223
Author(s):  
Eny Widiaty ◽  
Anton Priyo Nugroho

Economic growth is a fundamental indicator in assessing economic performance. In assessing the economic growth, it can use several important variables such as Inflation, Government Consumption Expenditure, Foreign Debts, and Sharia Finance. In turn, this research aims to analyze the impacts of these variables on the economic growth in Indonesia (Quarter I – Quarter IV) in the period of 2011-2018. The Error Correction Model used in the analysis method. The results of the analysis showed that the variable inflation in the long-term harmed economic growth; while, in the short-term, the level of inflation had a positive impact on economic growth. Meanwhile, the variable of Government Consumption Expenditure had a negative contribution to economic growth. Furthermore, foreign debt in the long term hurt economic growth, but for the short term, it could bring the positive one. Variable of Sharia finance showed a good result both in the short term and in the long term with a negative correlation with economic growth in Indonesia. However, all variables of inflation, Government Consumption Expenditure, foreign debts, and sharia finance simultaneously had an impact on National Economic Growth.


2018 ◽  
Vol 8 (4) ◽  
pp. 125
Author(s):  
Nguyen Van Huong ◽  
Dang Quy Duong ◽  
Do Thi Thu Thuy

Research on human resources, foreign direct investment and economic development are important issues in assessing the effectiveness of employment as well as attracting foreign direct investment (FDI) in the economy. In this study, the author analyzes the impact of human resource factors and FDI on economic growth in Vietnam from 1990 to 2017. By regression analysis based on the ARDL model, the result shows FDI has only a positive effect on economic growth in the short term but has the opposite effect in the long term. At the same time, unemployment rates have the opposite effect on economic growth in the short term. Average life expectancy does not affect economic growth in both the short and long term. From this result, the author also offers some suggestions for economic development in both the short and long term.


2018 ◽  
Vol 10 (04) ◽  
pp. 49-59
Author(s):  
Yanrui WU

This article presents a review of the progress in economic restructuring in the Chinese economy. It explores the role of consumption versus investment in economic growth, trends in inequality, growth of the state and non-state sectors, and balancing between short-term and long-term development goals. It also discusses the major challenges in China’s economy and hence Chinese policymakers’ possible responses in the coming decade.


2017 ◽  
Vol 6 (2) ◽  
pp. 149
Author(s):  
Yuliarti Yuliarti ◽  
Hasdi Aimon ◽  
Melti Roza Adry

The purpose of this research to analyze the long-term effects and short-term shocks of internal factors (inflation, economic growth, Indonesian interest rates) and external factors (economic openness, foreign interest rates, exchange rates) to foreign direct investment in Indonesia. The effects and impacts of these shocks will form the basis for decision-making and policy-setting in achieving optimal economic growth. This study uses the Ordinary Least Square (OLS) and Error Correction Model (ECM) method to see the long-term and short-term effects of internal and external factors on foreign direct investment in Indonesia. The data used time series data from fisrt quarterly in 2000 to fourth quarterly in 2016. In more detail, ECM used to analyze short-term shocks. The results show that in the short term the internal factor of inflation caused shocks to foreign direct investment and in the long run, the variable of inflation and economic growth have a significant effect on foreign direct investment. External factors such as: economic openness, foreign interest rate and exchange rate in the short run cause shocks to foreign direct investment, and in the long term the openness of economy and exchange rate have a significant influence.


2018 ◽  
Vol 3 (1) ◽  
pp. 61
Author(s):  
Arga Prati Dhina ◽  
Wasiaturrahma Wasiaturrahma

The role of manufacture in Indonesia influence the economic growth. This research aims to observe and analyze influencing factors of manufacturing sector output in Indonesia. The research method used Error Correction Model (ECM) at period 2005 in 1stquartal – 2017 in 4thquartal. This research used secondary data from Statistik Ekonomi dan Keuangan Indonesia (SEKI) and Federal Reserves. The results of the study show that in long term estimation lend interest rate and inflation have negative and significant impact, whereas FDI has positive and significant impact towards manufacturing sector output. Otherwise, in short term estimation show that lend interest rate has negative and significant impact, while inflation and FDI have no significant impact towards manufacturing sector output.


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