Abstract

This study adopted an analytical approach, using the ordinary least squares (OLS) method, in order to demonstrate the response of AFM to the external public debt and to the key economic factors, while there is incessant effort by the governments to keep developing the main economic sectors during the last 15 years. Subsequently, the study attempted to prove that a country without abundant of natural resources, like Jordan, can prosper and develop similar or close to the developed and petroleum countries, while it suffers a high external public debt. The statistical analysis concluded that at level (0.10) there is a significant negative impact of external public debt on the development of AFM, which is a magnet for Jordan governments to direct the future external public debts, if it is unavoidable toward financing the infrastructure projects and capital investments.

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