Business and Economics Journal

The Impact of External Funding Flow on Jordans GDP (1997-2017)

Abstract

Ahmad Mashal*, Lama H Nasrawi, Emad Ahmed and Anas Ghazalat

The main objective of this study is to investigate the impact of external funding flow on Jordan’s GDP (1997 – 2017) focusing on variables such as; Grants (GR), Soft Loans (LN), Foreign Direct Investment (FDI), and the Jordanian Migrant Worker's Remittances (JMWR) on Jordan's GDP which represent the dependent variable through using the E-Views statistical program and multiple regressions analysis. Previous studies showed significant and non-significant impact of the flow of external funding on the economy. In this study the researchers analyzed the impact of external funding flow on Jordan's GDP for the period (1997-2017) and found that grants (GR) and Foreign Direct Investment (FDI) have a statistically significant impact on Jordan's GDP; in contrast, Soft Loans (LN) and the Jordanian Migrant’s Worker’s Remittances (JMWR) have no statistically significant impact on Jordan's GDP for the same period. This study filled the gap and expanded the analysis to test whether there is an impact of grants independently of the soft loans on Jordan’s GDP and vice versa, in addition, the study investigated the impact of other variables such as; Foreign Direct Investment (FDI), and the Jordanian Migrant Worker's Remittances (JMWR).