Abstract
This paper aims to examine the impact of short and long-term active Foreign Portfolio Investments (FPI) on Jordan Economic Growth (EG) thru (1996-2017) by employing some econometric methods like ARDL and Error Correction Models to reach the study results. Findings reveal that FPI have a long-term statistical positive impact on EG at level (5%) and also have a short-term negative impact on EG at level (5%), where EG needs about ten years to reach a full adjustment.
Highlights
The debt charges, public budget deficit, unemployment problems, sequenced crises, and the desire to open up to the outside world led Jordan; as one of the developing countries to try for the past three decades to support many efforts of selecting the optimal techniques to remove or decline difficulties by attracting edge–to–edge foreign and domestic investments, and promoting the economic growth
This paper aims to examine the impact of short and long-term active Foreign Portfolio Investments (FPI) on Jordan Economic Growth (EG) thru (1996-2017) by employing some econometric methods like ARDL and Error Correction Models to reach the study results
FPI gives many advantages to both foreign investors and the host countries, where foreign investors sometimes can benefit from buying securities at international financial markets which involve hedging their investments from risks by the diversification of portfolio and maximizing returns by utilizing differences of exchange rates
Summary
The debt charges, public budget deficit, unemployment problems, sequenced crises, and the desire to open up to the outside world led Jordan; as one of the developing countries to try for the past three decades to support many efforts of selecting the optimal techniques to remove or decline difficulties by attracting edge–to–edge foreign and domestic investments, and promoting the economic growth. The foreign investments contain two categories: foreign direct investment (FDI) and FPI, which develop and promote the financial markets and relate directly to the acceleration of countries’ economic growth by covering the gap between savings and investments and using the foreign investments, especially portfolio investments. FPI gives many advantages to both foreign investors and the host countries, where foreign investors sometimes can benefit from buying securities at international financial markets which involve hedging their investments from risks by the diversification of portfolio and maximizing returns by utilizing differences of exchange rates. The host country can acquire some advantages from FPI such as adding new foreign currencies on its reserves to cover the deficits on balance of payments (Albulescu, 2015) and supplying the markets’ capital with liquidity. Investors focus on generating quick returns on their investments
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
