WTO-Chair Funds for Research Projects 2012: University of Jordan

19 November 2012

Project title: Trade openness and real investment in jordan: an ARDL approach
 
Project Summary:
 
The research is an attempt to examine the relationship between trade openness and real investment in the case of Jordanian economy. Using “General-to-Specific” technique, a number of investment functions will be estimated to obtain the most accurate model. These models are estimated depending on an Autoregressive Distributed Lag (ARDL) approach that is developed by Pesaran and Shin (1999) and Pesaran et al. (2001), where this procedure allows us to apply the model regardless of the stationarity of the variables.
 
This research looks at the potential determinants of investment for Jordan, trying to formulate an investment function and attempting to capture the role played by the trade openness as well as the monetary policy in the real economy. It employs a number of variables depending on the theory in an attempt to capture their effect on investment in Jordan covering the time period 1976 to 2010.