The Impact of Foreign Direct Investment and Official Development Assistance on Tax Burden: An Analytical Study on Jordan

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Mustafa Mohammad Alalawneh
Mustafa Mohammad Alalawneh
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The purpose of this study is to investigate the effect of foreign direct investment and official development assistance on tax burden in Jordan employing the Auto-Regressive Distributed Lags Bounds Testing (ARDL BT) co-integration approach to the data ranging from 1991 to 2018. The results indicated that there is a long-run relationship among variables. The results showed that there is a positive and statistically significant effect of the ratio of foreign direct investment to GDP (FDI) on tax burden (TB) in the long run, and a positive and statistically significant effect of the ratio of official development assistance to GDP (ODA) on tax burden (TB) in the long run. The estimation results indicate that a 1% increase in (FDI) increases (TB) by 0.53%, and a 1% increase in (ODA) increases (TB) by 1.45%. This study is the first of its kind in examining the impact of foreign direct investment and official development assistance together on the tax burden in Jordan.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Mustafa Mohammad Alalawneh. 2020. \u201cThe Impact of Foreign Direct Investment and Official Development Assistance on Tax Burden: An Analytical Study on Jordan\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 20 (GJMBR Volume 20 Issue A16): .

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Issue Cover
GJMBR Volume 20 Issue A16
Pg. 51- 57
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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v1.2

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November 27, 2020

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English

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The purpose of this study is to investigate the effect of foreign direct investment and official development assistance on tax burden in Jordan employing the Auto-Regressive Distributed Lags Bounds Testing (ARDL BT) co-integration approach to the data ranging from 1991 to 2018. The results indicated that there is a long-run relationship among variables. The results showed that there is a positive and statistically significant effect of the ratio of foreign direct investment to GDP (FDI) on tax burden (TB) in the long run, and a positive and statistically significant effect of the ratio of official development assistance to GDP (ODA) on tax burden (TB) in the long run. The estimation results indicate that a 1% increase in (FDI) increases (TB) by 0.53%, and a 1% increase in (ODA) increases (TB) by 1.45%. This study is the first of its kind in examining the impact of foreign direct investment and official development assistance together on the tax burden in Jordan.

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The Impact of Foreign Direct Investment and Official Development Assistance on Tax Burden: An Analytical Study on Jordan

Mustafa Mohammad Alalawneh
Mustafa Mohammad Alalawneh Khazar University

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