The Foreign Direct Investment (FDI) Environment in Jordan: A Descriptive Overview

Foreign Direct Investment (FDI) is when businesses tend to have capital investment outside their home country in pursuit of lower production cost & higher profits. It is considered as one of the two types of production factors mobility from developed countries to developing countries. FDI has many advantages from both the investors (developed country) & host (developing countries) & is considered as a win-win situation for both parties. On the other hand, there are also some challenges & risks that could be confronted. This research is intended to explain the concept of FDI, analyze its purpose, desirability, advantages & disadvantages. It'll also give some highlights about FDI in Jordan, its direct & indirect effects on economic growth from different aspects, the government's efforts & initiatives in converting Jordan to a more appealing environment to foreign investors, in addition to discussing some of its barriers & limitations in the country.