Theory and Applied Relationships between FDI, FPI, Trade and Finance: Evidence from Jordan (1990 - 2009)

  •  Jehad Aldehayyat    
  •  Mohammad Alalaya    


This paper tests the Cusuality from trade to Finance, the relation between FDI and FPI and modified models which measures theoretical sense with production and government and taxation. We testify the impact of FDI, with Economic growth rate represents of growth rate of (GDP) and with capital defer Maries. Researcher investigate the intertemporal linkages between FDI and dis aggregate measures of trade in Jordan applied with (linear) and (No linear) methods after pooling the data.
Researcher found strong evidence of auto correlation in the association between FDI and Gross flows and trade is positive and significant at the 95% level For Jordan. Decomposition of measure for trade openness in to trade in goods. In services and in incomes how ever, yields very similar statistically significant results, In addition the results for other macroeconomic and political control variables are reported in the discussion of Results.
Thus many alternative specifications of our empirical model in order to verify the results of mode

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