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This study aims to measure the effects of international financial flows represented in exports, remittances of overseas workers, foreign direct investment, and external grants on the economic growth in Jordan during the periodfrom 1990 to 2018. The study used self-regression for the distributed slowdown periods. The study obtained several important results. First, the study found the presence of a significant and positive effect of foreign exports and grants on economic growth in the long and short term. The study also concluded the existence of the significant and negative effect of workers’remittances on economic growth in the long term, and the insignificance of the effect in the short term. The results indicate that the effects of foreign direct investment on economic growth in the long and short term areinsignificant. The study offers aset of recommendations, including the adoption of the Jordanian government ofa policy that encourages exportsbased on the introduction of national exportable products and the improvement of the quality of Jordanian products. Jordanian workers should be facilitated to work in the foreign markets and their remittances should be utilized for investment purposes instead of spending them for consumer purposes.Periodic reviews of the institutional and legal frameworks pertaining to encouraging investment in Jordan should be conducted and external grants should be directed towards priority projects for the Jordanian economy.
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In-Text Citation: (Qwader, 2021)
To Cite this Article: Qwader, A. S. (2021). International Financial Flows its Effects on Economic Growth in Jordan. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 37–56.
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