Shahriyar Mukhtarov

Department of World Economy, Baku Engineering University

UNEC Empirical Research Center, Azerbaijan State University of Economics (UNEC),

Azerbaijan

smuxtarov@beu.edu.az

The impact of foreign direct investment on exports in Jordan: An empirical analysis

Mustafa Mohammad Alalawneh

School of Economics and Management, Khazar University 

Azerbaijan

falconengineer81@yahoo.com

Elsevar Ibadov

Department of Accounting and Audit, Baku Engineering University

School of Business, Azerbaijan State University of Economics (UNEC) 

Azerbaijan

eibadov@beu.edu.az

Ayten Huseynli

Department of Economics and Management, Azerbaijan State University of Economics (UNEC)

Azerbaijan

a.huseynli@unec.edu.az 

Abstract. This study investigates the impact of foreign direct investment (FDI) on exports in the case of Jordan, employing Autoregressive Distributed Lag Bounds Testing (ARDL BT) cointegration approach to the data ranging from 1980 to 2018. The results indicate that there is a long-run relationship among the variables. Also, we find that there is a positive and statistically significant impact of FDI on export in the long-run. The estimation results indicate that a 1% increase in FDI increases exports by 0.13%.

Received: December, 2018

1st Revision: February, 2019

Accepted: July, 2019

DOI: 10.14254/2071-8330.2019/12-3/4

JEL Classification: E20, E22, F10, F21

Keywords: foreign direct investment, exports, ARDL, Jordan