TITLE:
“Trilogy” of FDI, Export, and Remittances: An Empirical Study on Jordan’s Economic Development
AUTHORS:
Mustafa Mohammad Alalawneh
KEYWORDS:
FDI, Remittances, Export, Unemployment, ARDL, Jordan
JOURNAL NAME:
Modern Economy,
Vol.14 No.2,
February
28,
2023
ABSTRACT: One of the most difficult challenges facing the
economies of developing and wealthy countries alike is the concern about
economic development, particularly the issues of economic growth and
unemployment. The study concentrated on the trinity of foreign direct
investment, exports, and remittances because it is one of the most significant
factors in international commerce and financial transactions and the main
source of foreign reserves in Jordan. The study investigated the impact of
foreign direct investment flows and foreign remittances in addition to exports
on unemployment levels in Jordan in the period from 1982 to 2020, and
unemployment was used as a representative
variable for the economic development process. The study aimed to demonstrate
the effect in the long run, and the auto-regressive distributed lags test
(ARDL) was used as a tool for the standard analysis. The results showed that
each of the three independent variables reduced unemployment in the long run,
and the results showed a co-integration relationship in the long run. This
study is considered one of the few and rare studies investigating this trio’s
impact on Jordan’s economic development. Based on the results, the study
presented recommendations for decision-makers.