The Impact of Technological Development on Jordanian Industrial Sector

  •  Mahmoud AL-Refai    
  •  Samer Abdelhadi    
  •  Adli Al-Qaraein    


The technological advancement being considered as an essential core of economic development, whereby the introduction of new technology will not only reduce production costs, but could also lead to increasing the efficiency of production processes. Jordan is one of those countries that had made substantial progress in implementing new technology in various sectors, which reflected in a positive way on the Jordanian economy. This study aims to identify the effects of technological development on the industrial sector in Jordan during the period (1990-2014), and its role in the development and increase in the volume of industrial production in order to achieve self-sufficiency and providing job opportunities for the unemployed. The analysis used the method of Vector Error Correction Model (VECM) in estimating a function of the Cobb Douglas production. The study concluded that technology has a positive impact on the industrial sector in Jordan, and that the technological capital should be more intensive in the long term.

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