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

Mustafa Mohammad Alalawneh

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

Mustafa Mohammad Alalawneh * §

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Khazar University

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

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Abstract

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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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

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

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GJMBR Volume 20 Issue A16

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

foreign direct investment official development assistance tax burden

Classification

GJMBR-A Classification JEL Code: M21

Submission ReceivedDecember 7, 2019
Peer Review Double Blind
Handling Editor
Accepted January 3, 2020
Published January 15, 2020

Version of record

v1.2

Issue date

November 27, 2020

Language

English

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