The Current State of Investment Facilities and Their Impact on Attracting Foreign Investments: A Comparative Study between Turkey and the Hashemite Kingdom of Jordan

Abstract

Foreign investment has become an essential phenomenon in the global economy today. It represents a major driver of economic development for many countries. It is carried out by investors in order to attain a variety of business advantages. However, investments do not flow into economies randomly, but they move to countries based on the available investment facilities that encourage investors to select certain countries over others. Therefore, investment facilities are of utmost importance for attracting foreign investments. The present study aims to investigate the current state of investment facilities and their impact on attracting foreign investments. It presents a comparison between two contexts, which are Turkey and the Hashemite Kingdom of Jordan. The author adopts the literature review methodology, which involves reviewing recent relevant literature. In the light of insight provided by literature, the study has obtained the following findings: both Turkey and Jordan are examples of countries that have succeeded in attracting foreign investments through investment facilities; strengths of the Turkish experience include granting foreign investors rights equal to those of their domestic counterparts as well as economic openness and liberalization, while its weaknesses include the failure to attract flows of foreign investments to a level comparable to that of domestic investments; and the strengths of the Jordanian experience include the introduction of a variety of laws, strategies, and plans to create an attractive investment environment, while its main weakness is the failure to maintain consistency of growth in the net investment of foreign investors. In light of these findings, the study presents a list of relevant research suggestions and practical recommendations.