| Author(s) | Walid M. Shawagfeh* and Sami M. Masoud** |
| Affiliation | -Assistant Professor, Department of Economics, --Assistant Professor, Department of Economics, University of Jordan, Amman, Jordan |
| Title | Investment of the Largest Private Economic Institutions in Jordan: An Analytical Econometric Study |
| Source | Journal of King Saud University. Administrative Sciences. Volume 14, No 1. (2002/1422) |
| Abstract | The goal of this study is to determine the investment demand function for the largest business establishment (according to their sales criterion) of the private sector in Jordan, and in particular, those which are of concern to the new Law oflnvestment. The study, which is based on an interaction oftwo economic models of investment: the neoclassical model and the accelerator model, uses many sources of data: sampling surveys and secondary source. The study considers net investment, according to the model, as a function of two variables: the demand for the output of the firm, and the user cost of capital. Using regression analysis, it was possible to specify the best model representing the investment demand function for the businesses under consideration. Moreover, it was possible to find a highly significant linear regression relation between net investment and each of the firm's output and the user cost of capital, with positive sign for the former and negative one for the latter. |
