The role of foreign direct investment in promoting sustainable development in Jordan: The Engle-Granger Approach for the period (2000-2018)

Abstract

This study aimed to clarify the role of foreign direct investments in supporting sustainable development in Jordan for the period 2000-2018, To achieve this goal, the study used annual data for a time series during the period(2000-2018) for both foreign direct investment and sustainable development indicators, net inflows as indicators of foreign direct investment flows, GDP growth, unemployment rates, and sustainable land Agriculture as indicators of sustainable development for its three dimensions (the economic dimension, the social dimension, and the environmental dimension). The use of unit root tests to study stability and the use of the co integration test according to the Angel method Granger to study the relationship and use Eviews to estimate the model.

The study found a balanced relationship between the volume of flows and the economic and environmental dimension of development, as well the study showed that foreign direct investment flows do not contribute significantly to reducing unemployment rates (The social dimension).

The study recommended that the government have a role in directing these investments towards the desired sectors in order to achieve real growth rates, reducing unemployment and creating more job opportunities.