The long run cointegration Relationship among Macroeconomic Variable and Total Investment in Jordan

Abstract

This study aimed to identify the cointegration relationship among macroeconomic variables (economic growth rate, inflation rate, income and profit tax rate, budget deficit after grants, balance of payments deficit) and investment volume in Jordan using time series data from 1990 to 2025 and Autoregressive Distributed Lag Model (ARDL) will be used to analyze the cointegration relationship between selected economic indicators. The results show that there existence of both long-term and short-term relationships between the selected macroeconomic indicators and the investment volume in Jordan. The policy makers must pay more attention to the importance of size of investment in Jordan, Intensifying the efforts by the relevant
authorities to facilitate the process of obtaining approvals and licenses, and providing greater incentives for investors, in order to create a secure investment environment, encourage investment, and increase its rates.