Abstract

Objectives: The researcher aims to identify the most important factors affecting foreign direct investment and measure the impact of these factors on foreign direct investment for the study period extending between 1984 and 2022. Methods: Time series data were used, employing standard tests to estimate regression coefficients and determine the nature of the statistical relationship between the study variables, using the E-views 9 program. Results: The study reached the following conclusions: foreign direct investment, the inflation rate, and the level of domestic investment are non-stationary (unstable) at the level. However, the unemployment rate was stationary at a 10% significance level, and the GDP growth rate was stationary at a 1% significance level. After taking the first difference for foreign investment, the inflation rate the level of domestic investment became stationary at a 1% significance level. Foreign direct investment in Jordan is positively influenced by domestic investment and the official exchange rate among other factors. Conclusion: Among the key recommendations reached by the study are: working to encourage foreign direct investment inflows, which would create more job opportunities to reduce unemployment levels; adopting clear economic policies to curb rising inflation rates; developing clear and long-term policies to study the obstacles that limit the attraction of foreign direct investments; encouraging domestic investment by enhancing local savings, as this has a clear impact on convincing foreign direct investments to consider Jordan as a suitable destination for their investments among other recommendations.