Does The Foreign Direct Investment Affect Economic Growth in Jordan in Light of Commercial Openness

Purpose: This paper aims to examine the effect of foreign direct investment on economic growth in Jordan in light of the trade openness, during the period from 1999 to 2019.   Theoretical Framework: This paper discusses how Jordan, as a developing country, has worked over the years to attract foreign investment by creating an environment of incentives, benefits, and legislation that encourages such investments; taking advantage of low local labor wages, high administrative costs, and great commercial openness.   Design/methodology/approach: To achieve the objectives of the study and to construct the statistical model the study used analytical methodology. The following statistical methods were applied; Hausman, Wald Test, F-Test Statistic, Granger, Multicollinearity test, Normality Test, Lagrange Test, Multiplier Test, and Causality Test.   Findings: After conducting the analysis tests, the results showed a statistically significant impact of open trade direct investment on economic growth, Moreover, findings showed a positive impact on the degree of economic growth, whenever the degree of trade openness and the flow of foreign investment increase.   Research, Practical & Social implications: The independent variables in the study model were measured by the ratio of foreign direct investment from the nominal GDP. The variable (the degree of trade openness) was expressed as the ratio of exports and imports to trade volume. The generalized Method of Moments (GMM) was used in this study.   Originality/value: In light of Jordan's extensive commercial openness, This investigation looked at the impact of FDI on economic expansion. The study's findings are in line with theoretical research and other studies that hold that a country's level of economic growth is not adversely affected by significant trade openness because foreign investments are not less effective

The Effect of Supply Shock and Demand Shock on the Foreign Currencies Exchange Rate Pass – Through to Price Index in Jordan (1990 –2013)

This study aims to identify the variables ( supply and demand shocks) affecting foreign currencies exchange rate pass–through to price index in Jordan , over the years ( 1990- 2013) to determine their effect and transfer to domestic price index.To achieve this goal, the researcher modifying (McCarthy) Model; examining the main hypotheses of the study which is the measurement of the effect of exchange rate pass-through on price index; and partial hypotheses which discusses supply shock (oil prices) and demand shock (money supply) impact on price index.Using VAR model to examine these hypotheses, the results of variance components and impulse response revealed a strong relationship between the movement of foreign currencies exchange rates and the price index in Jordan; and the response of wholesale price index to these movements was greater than the response of consumer price index.The results as well showed a strong and positive effect of demand and supply shocks on the transfer of the movement of foreign currencies exchange rates to price index in Jordan. These effects were stable in first and second period and increased in the next periods. Level of exports concentration, imports composition, difference between domestic and global inflation rates, lack of flexibility of the wages and prices, capital movements, and markets integration; all these had a role in speeding the transfer of exchange rates movements to the price index in Jordan. Keywords: Exchange Rate Pass Through, Nominal Effective Exchange Rate (NEER), Supply shock, Demand shock, VAR analyses, Auto regression

The Determinants of Banks' Credit Default at Jordanian Commercial Banks (Internal Perspective)

In this study researchers will examine the factors affecting the default of banks' credit facilities; the reasons behind the defaulting of the bank debts in Jordan, from the internal perspective, and to identify the early indicators appearance of the default of credit facilities. Through a random sample from Jordanian banks, throughout the year 2012. The research problem was specified to answer the following questions, firstly: What are the effect of (management efficiency, leverage, loan-loss provision, funding cost, and liquidity), factors at the default of credit facilities? Secondly: Which factors are considered to be important and should be monitored? The data will be analyzed by a use the linear regression to predict the relationship between the dependent variable (ratio of non-performing loans to total loans as at the end of financial year of bank i in time t) and the independents variables (management efficiency, leverage, loan-loss provision, funding cost, liquidity). In order to ensure that all regression assumptions are met, each variable will be tested for homoscedastic, linearity and normality. The results summaries show a negative relationship between the independents variables (management efficiency, loan-loss provision, funding cost, liquidity), and the dependent variable (ratio of non-performing loans to total loans. There is positive relationship between the independent variable (leverage), and dependent variable (ratio of non-performing loans to total loans. The R-squared figure (Explanatory Factor) equal to (0.935), this result is very high and emphasis the assumptions that researcher accept. Durbin–Watson value was (1.682) which indicates no autocorrelation. Researcher states the following recommendations: -               Banks have to give more attention to credit risk management to improve bank competitive advantage. -               Banks have to ease restrictions on borrowing process due to negative relation between liquidity and NLP, due to large amount of liquidity in Jordanian banks. Keywords: Credit Default, Internal perspective, Management efficiency, Leverage, Loan-loss provision, Funding cost, Liquidity, Non-Performing loans

The Impact of Applying Re-Engineering Application Process on Critical Performance Criteria in Jordanian Islamic Banks

Purpose: The importance of the study is that it provides an understanding of the management approach to re-engineering the application process in the banking industry to deal with significant and quick changes in the environment by implementing superior and radical changes that aid it in increasing its efficiency and lowering costs as well as in shifting the focus of employees to meet the needs and desires of customers by redesigning banking processes based on customer perceptions and needs, during the period 2019.   Theoretical Framework: The Study of the management method in re-engineering the application process in the banking sector to face the large and rapid changes in the environment is critical, as is shifting the focus of employees to meet the needs and desires of customers by redesigning the banking process based on customer perceptions and needs.   Design/methodology/approach: All three Jordanian Islamic banks comprise the study's study community, and the study's sample includes sixty-three (63) members of these banks' managerial ranks. The study used a questionnaire to gather data and analytical methodology, which helped explain the study problem.   Findings: After conducting the analysis process of the study data and hypotheses, Findings show There is a statistically significant influence of the application of the re-engineering process (redesigning jobs, redesigning process, reducing control levels, using new technology, empowering employees) on performance criteria  (costs, quality, speed ) in Jordanian Islamic banks.  Research, Practical & Social implications: To identify and analyze the re-engineering application process in Jordanian Islamic banks. The following elements are part of the study methodology: Cost, Quality, and Speed are the dependent variables in the crucial performance criteria; the study relied on choosing the dependent variables according to the objectives that re-engineering the application process can accomplish. Application re-engineering process dimensions, such as redesigning jobs and processes redesign, reducing control levels, using new technology, and empowering employees act as independent variables.   Originality/value: The Study recommends additional future research that could involve all levels of bank management in the re-engineering process and create an effective technology infrastructure and communication system that effectively contributes to the success of the re-engineering process

Oil Price, Revenues and Expenditures in Saudi Arabia

The increase in the price of crude oil is critically important for economic development. Crude oil is not only an important resource for production, but also accounts for a large proportion of the expenditure of private households as well as public sector. Saudi Arabia, which produces 9.5 million barrel per day, is considered the largest exporting country in the world, which represents 90% of its budget. Therefore, this fluctuation in the price of crude affects the government budget. This study aimed to examine the relation between the continuous price change and revenues and the whole impact in government expenditures during the period 2003-2014 in Saudi Arabia. Different statistical techniques were used to show the aforementioned relation. However, the study found that there is an adverse relationship between oil price and government expenditures in Saudi Arabia during the period of the study. Key words: oil Price, Saudi Economy, Government Expenditure