The Impact of Inward FDI Stocks on Income Inequality in Jordan

Abstract

This paper explores how inward foreign direct investment (FDI) stocks and other determinants impact income inequality in Jordan.  We apply the partial correlation which is suitable for small samples. The data for the study cover the years from 1986 to 2013. The result shows that three is no significant relationship between FDI and Income Inequality in Jordan during the period (1986 – 2013). In order to control factors of income inequality other than FDI, we include some control variables, GDP per capita, inflation, government expenditure, and services sector.The results of all these variables indicate that no significant relationship with Income Inequality in Jordan during the period (1986 – 2013).

Keywords: Income inequality, FDI, Jordan.