Reality of the Industrial Sector in Jordan

Abstract

The study aims to examine Jordan's industrial sector by using descriptive statistical and econometric methods. For the purposes of analysis, we used a time series data for the Jordanian industrial sector (Mining, manufacturing, and electricity) from 1990 to 2017. The study came out of the importance of the Jordanian industrial sector. During the study period, the industrial sector ranked first among the sectors in terms of relative importance in its contribution to GDP at an annual average rate of 16% . Comparing the industry's contribution to Jordan's GDP with other countries, Jordan is still relatively late compared to semi-industrialized developing countries, like Singapore, Indonesia, South Korea, Thailand, Malaysia, and Egypt. In addition, there was a fluctuating rise in labor productivity in the industrial sector, this may be due to the increase in the amount of fixed capital, as expressed by high capital intensity technology, or to the development of labor’s skills and competencies. The study recommended the need to work to improve the output of the educational system in line with the requirements of revitalization of the industrial sector, and work to increase the efficiency of vocational training institutions in order to raise the productive efficiency of local labor because of the impact of the revitalization of the industrial sector.

Keywords: industry , manufacturing, Mining, market , Jordan, electricity, Value added

DOI: 10.7176/JESD/10-18-11

Publication date:September 30^th 2019