The objective of this paper is to study the impacts of foreign direct investments (FDI) on both the unemployment rate and economic growth in Jordan using empirical analysis of the times series data from 1998-2015. Tests such as unit root and diagnostic tests was carry out to ensure that the variables used in the model are non-stationary in levels and stationary in the first difference and the models used in the study do not have any autocorrelation and heteroscedasticity problem, as well as the data series is normally distributed. The ordinary least squares (OLS) method was used to explore the relations and the impact of FDI on both of the unemployment and real GDP. The result of the analysis shows that one percentage increase in FDI cause a decrease of (0.009%) of the unemployment rate in Jordan during the study period and in the meantime resulted on an increase of to increase 1.219% of real Gross Domestic Products (GDP).
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