Jordan's Attractiveness for FDI 2021
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Questions and Answers

According to the UNCTAD's 2021 World Investment Report, by what percentage did FDI flows fall in 2020?

35%

What is the projected increase in FDI flows for 2021, according to the UNCTAD's report?

10% to 15%

What is the name of the index published by the Milken Institute that assesses the attractiveness of economies to international investors?

Global Opportunity Index

Which of these categories is NOT included in the Global Opportunity Index?

<p>Environmental Sustainability</p> Signup and view all the answers

The United Arab Emirates (UAE) ranks highest in the Arab economies according to the Global Opportunity Index.

<p>True</p> Signup and view all the answers

In which category of the Global Opportunity Index does Jordan rank lowest?

<p>Business Perception</p> Signup and view all the answers

What are the two key areas that need special attention to improve Jordan's overall ranking on the Global Opportunity Index?

<p>Business perception and economic basics</p> Signup and view all the answers

Jordan's ranking in the 'Institutional Framework' category of the Global Opportunity Index has significantly worsened in recent years.

<p>False</p> Signup and view all the answers

How can Jordan improve its ranking in the Business Perception category of the Global Opportunity Index?

<p>By addressing concerns related to the cost of starting a business, labor regulations, tax rates, enforcing contracts, resolving insolvency, and providing a faster time to resolve disputes.</p> Signup and view all the answers

How can improvements to Jordan's economic basics improve its ranking on the Global Opportunity Index?

<p>By addressing concerns related to micro, small, and medium enterprise density, government debt load, total factor productivity, the unemployment rate, and female participation rates.</p> Signup and view all the answers

Study Notes

Attractiveness of Jordan to International Investors

  • FDI (Foreign Direct Investment) is crucial for growth and development
  • FDI stimulates economic growth, increases exports, and creates jobs
  • FDI leads to human resource development, increased corporate tax revenues, and technology transfer
  • 2020 saw a 35% fall in FDI flows, but recovery is predicted for 2021-2022
  • The Milken Institute's 2021 Global Opportunity Index assesses 145 economies
  • This index uses a five- category system (and 96 variables) to measure attractiveness:
    • Business Perception: assesses ease of doing business and dispute resolution
    • Economic Basics: evaluates macroeconomic outlook, workforce, and innovation potential
    • Financial Services: measures the depth and breadth of financial access
    • Institutional Framework: examines the support or hindrance of institutions to business activity
    • Standards and International Politics: assesses international integration and compliance
  • Jordan's ranking on the 2021 Global Opportunity Index is 79th out of 145 countries
  • Within Arab economies, Jordan ranks 7th
  • Sweden tops the global index, while Yemen is last among Arab economies

Global Opportunity Index Ranking

  • Jordan's ranking is 79th in global and 7th in Arab ranking
  • Sweden tops the global index. among Arab economies, Yemen is last
  • In "Business Perception", Jordan ranks 103rd globally and 10th among Arab economies.
  • In "Economic Fundamentals", Jordan is 114th globally, and 10th in the Arab region
  • In "Financial Services", Jordan ranks 62nd globally, and 7th among Arab countries.

Variables Affecting Jordan's Ranking

  • Business Perception: Cost to start a business, labor regulations, tax rates, contract enforcement, insolvency resolution time
  • Economic Basics: Micro, Small & Medium Enterprises density, government debt, productivity, unemployment, female participation rate

Areas for Improvement

  • Jordan needs to improve "business perception" and "economic basics" variables to enhance its Global Opportunity Index ranking

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Description

Explore the factors that make Jordan an appealing destination for foreign direct investment (FDI). This quiz covers the impact of FDI on economic growth, job creation, and human resource development, as well as an analysis of the Milken Institute's Global Opportunity Index. Test your knowledge on the various categories that determine Jordan's attractiveness to international investors.

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