المستخلص: |
The government of Jordan had introduced intensive effort to stimulate direct foreign investments in Jordan. To encourage foreign investments, much legislation was issued. In addition, other procedures such as privatization, economic reforms, and current account transactions were facilitated. Despite that, essential increases of foreign investments with in Jordanian firms were not observed. The reasons behind that were related to factors such as political and economic instability over the region, market limitation of Jordan, and the weakness of the GDP. The results of the study show that among nine variables, the GDP had the main impact on the direct foreign investments, the flow of Arab and foreign finance over the period 1985-1999. Therefore, increasing foreign investments require political and economic stability conditions which are considered as external variables.
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