Robust and Fragile Determinants of Foreign Direct Investment in Jordan

The study’s goal is to determine the elements that influence foreign direct investment flows in Jordan’s economy in the long run (2005–2020). This research looked at 56 industrial businesses. It also used panel data as a data source. E-views software was used to conduct the analysis. The study found that the gross domestic product had a favorable, long-term, statistically significant influence. Workers’ compensation has a favorable, long-term, statistically significant effect. The scale of the industrial market has a favorable, long-term, statistically significant influence. Last but not least, trade openness has a beneficial, long-term, statistically significant benefit. On the other side, the study found that there was a detrimental impact. Political stability has a statistically significant negative long-term influence. Taxes also have a statistically significant long-term detrimental influence. The report suggests focusing on trade openness and making international trade logistical operations easier. Tax breaks, incentives, and investment promotion policies are also being used to entice international investment.