Paper Details
Title The Determinants of Employment in Jordan: A Time Series Analysis
AuthorsAL-ABDULRAZAG A. BASHIER and AMEERAH N. WAHBAN
Abstract

This study investigated the impact of macroeconomic variables on labor employment in Jordan for the period 1980-2012 by using the fully Modified Ordinary Least Square approach (FMOLS). The economic model incorporated the labor employment as the dependent variable whereas the real Gross Domestic Product (GDP), real Foreign Direct Investment (FDI), and the value of total trade were the independent variables. The results of the time series properties unit root and the Johansen co-integration tests revealed that that all variables were integrated of order one, I(1) and cointegrated indicating the existence of long-run equilibrium among variables included in the econometric model. There empirical findings showed that all variables have positive and significant impacts on employment level in Jordan labor market. Moreover, the findings showed that real Gross Domestic Product had the substantial influence on employment and a 10% increase in real Gross Domestic Product caused a 6.78% increase in employment level. The employment elasticity with respect to real Foreign Direct Investment was 0.267. It was expected that the findings of this study could be utilized by the government for future follow-up and reassessment of economic development programs in Jordan. One important policy recommendation was the attraction of Foreign Direct Investment into Jordan by setting out some economic policies that would make Jordan more attractive to foreign investors. Key Words: Co-integration, FMOLS, economic growth, FDI, Labor.

Pages 927-936
Volume 2
Issue 4
Part 1
File Name Download (1451)
DOI/AUN

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