The Impact of Jordan's Accession to the World Trade Organization (WTO) on Foreign Direct Investment in Jordan

Abstract

This study aims to investigate the impact of Jordan's accession to the World Trade Organization (WTO) on foreign direct investment in Jordan during the period of (1990-2011). Several diagnosis tests have been used in the study; Dickey Fuller test for stationarity, Co-integration Test to find the cointegrating  relationship among the variables, and Vector Auto-regression model (VAR) to reach the goal of the study. The results of the study have indicated that Jordan's accession to the WTO has negatively affected foreign direct investment in Jordan in the short run, and this effect becomes positive but insignificant  in the long run. The study recommends supporting and promoting foreign direct investment in Jordan.

Keywords: Foreign Direct Investment, Jordanian Economy, World Trade Organization