Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 323

Article in Press

The impact of labor migration inflow on the economy in Jordan (1980-2017)

Ahmad Mashal, Emad Ahmed and Doa’a Assi

  •  Received: 12 August 2020
  •  Accepted: 16 September 2020
The aim of this research was to investigate the impact of foreign labor migration on Jordan’s GDP which are related to the labor migration such as; foreign labor size, capital stock and labor’s outflow remittances. Statistical tests have been made according to the model that have been adjusted by the researchers depending on Cobb-Douglas production function to explain the effect of each independent variable on the dependent variable (GDP) from 1980 till 2017; analysis conducted using Regression Analysis, ADF test, correlation test, and Multicollinearity test on e-views statistical program. The analysis showed the impact of outflow remittances that sent by migrant labor to their families on the GDP. The result of this research showed that the foreign labors have a significant impact on Jordanian economy and they play an effective role in energizing the labor market in Jordan, on the other hand, the results showed that foreign labor’s outflow remittance have no significant impact on the economy in Jordan, and the government may consider making new regulations to encourage the foreign labors to spend of the earned money in the Jordanian market.

Keywords: migration, labors, economy, labor remittances, GDP, foreign labors, labor market, Jordan economy