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The Impact of Trade Openness on Foreign Direct Investment Inflow
in Jordan: Econometric Study (1990-2022)
Nader Alzabadi
Issam AL Dabbagh
Keywords: Trade openness, inflation, foreign direct investment
Published 2024-01-01
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Abstract : This study aimed to identify the impact of trade openness on the inflow of foreign investment in Jordan during the period 1990-2022. The researcher worked on using ARDL. This methodology is suitable for small samples. The results showed that the variables are stable on the first difference, this is what makes Bound test applicable.
The results of the long-term analysis indicated that increasing openness by 1%
contributes to an increase in foreign investment equivalent to 4%, moreover, that increasing openness in the short term by 1 contributes to an increase in foreign investment equivalent to 1.7%. The study recommended the necessity of maintaining this level of trade openness toward the world .
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