To What Extend do the Migrant's Remittances Affect on the Economic Growth in Jordan

摘要

The magnitude of a huge number of remittances which comes from individuals or from foreign direct investments that flow on the economies of developing countries during the last few decades cannot be ignored, and especially on Jordanian macroeconomic, where it is not considered as an industrial or oil country, but it is characterized by a human resources wealth. The revenues of these resources are considered to be one of the main pillars on the Jordanian economy. While, these human resources divided into two parts, some of them tend or choose to work inside the country and others tend to work abroad. On another level, The Kingdom of Jordan seeks to attract the foreign investment despite of some obstacles and conditions. Hence, the problem stems from the extent of the impact of migration revenues and foreign direct investment on Jordanian economic growth. So this study will examines the effects of remittances and FDI on the growth of Jordanian GDP using a time series data during 1980-2015, and then assess the relative importance and the interaction of both. The result of this study showed a long-run relationship of the impact of remittances and the foreign direct investment on gross domestic product growth. Whereas, the impact of foreign direct investment is greater than the impact remittances on GDP, while the study found a lack of causality between these variables in the short-term period.