Article entitled “The impact of monetary policy and tax revenues on foreign direct investment inflows: An empirical study on Jordan” authored by Mustafa Mohammad Alalawneh, PhD student at Khazar University Department of Economic, was published in “Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis” from Scopus collection.
The researcher examined the impact of monetary policy (proxied by money supply and interest rate) and tax revenue on foreign direct investment (FDI) in Jordan employing time series data period from 1991 to 2017. The Vector Error Correction Model (VECM), the Canonical Cointegrating Regression (CCR) and the Fully Modified Ordinary Least Squares (FMOLS) methods are applied in empirical estimations. Estimation results reveal that money supply has a positive and statistically significant impact on the FDI while, tax revenue has a negative impact on FDI in Jordan. Also, we find that the impact of interest rate is statistically insignificant. The results of current study are useful for the policymakers to formulate appropriate policies and support the literature for further research in the case of developing economies.
The article can be read at this link:
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