The Determinants of Labor Productivity in Jordan During the Period 1980-2017

Elham Mohammad Mustafa Alhaj Yousef

doi:doi:10.11648/j.ijber.20200901.13

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The Determinants of Labor Productivity in Jordan During the Period 1980-2017

Elham Mohammad Mustafa Alhaj Yousef

Published in International Journal of Business and Economics Research (Volume 9, Issue 1)

Received: 30 December 2019 Accepted: 9 January 2020 Published: 27 January 2020

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Abstract

This study aims at investigating the long-run and short-run relationships between labor productivity in Jordan and each of capital intensity, wages, trade openness and regulatory quality over the period 1980-2017. All the study variables are found to be stationary at the first difference. Johansen cointegration test revealed that there is a unique cointegrating equation. Therefore, Vector Error Correction Model (VECM) was implemented to estimate the short and long-run effects. The empirical results show that capital intensity, wages and regulatory quality have significant long-run positive impact on Jordanian labor productivity. However, all the independent variables have insignificant short-run effects on labor productivity during the study period. The significant negative coefficient of the error correction term (ECT) confirms the existence of long-run relationships. Moreover, this paper highlights the important role of regulatory quality as a governance indicator in improving labor productivity in Jordan, thus the study recommends improving public administration, strengthening governance, and applying the appropriate policies and regulations that promote and enhance national and foreign direct investments, and ensure efficient allocation of resources.

Published in	International Journal of Business and Economics Research (Volume 9, Issue 1)
DOI	10.11648/j.ijber.20200901.13
Page(s)	21-28
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Capital Intensity, Governance, Labor Productivity, Trade Openness

References

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Elham Mohammad Mustafa Alhaj Yousef. (2020). The Determinants of Labor Productivity in Jordan During the Period 1980-2017. International Journal of Business and Economics Research, 9(1), 21-28. https://doi.org/10.11648/j.ijber.20200901.13

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Elham Mohammad Mustafa Alhaj Yousef. The Determinants of Labor Productivity in Jordan During the Period 1980-2017. Int. J. Bus. Econ. Res. 2020, 9(1), 21-28. doi: 10.11648/j.ijber.20200901.13

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Elham Mohammad Mustafa Alhaj Yousef. The Determinants of Labor Productivity in Jordan During the Period 1980-2017. Int J Bus Econ Res. 2020;9(1):21-28. doi: 10.11648/j.ijber.20200901.13

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@article{10.11648/j.ijber.20200901.13,
  author = {Elham Mohammad Mustafa Alhaj Yousef},
  title = {The Determinants of Labor Productivity in Jordan During the Period 1980-2017},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {1},
  pages = {21-28},
  doi = {10.11648/j.ijber.20200901.13},
  url = {https://doi.org/10.11648/j.ijber.20200901.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200901.13},
  abstract = {This study aims at investigating the long-run and short-run relationships between labor productivity in Jordan and each of capital intensity, wages, trade openness and regulatory quality over the period 1980-2017. All the study variables are found to be stationary at the first difference. Johansen cointegration test revealed that there is a unique cointegrating equation. Therefore, Vector Error Correction Model (VECM) was implemented to estimate the short and long-run effects. The empirical results show that capital intensity, wages and regulatory quality have significant long-run positive impact on Jordanian labor productivity. However, all the independent variables have insignificant short-run effects on labor productivity during the study period. The significant negative coefficient of the error correction term (ECT) confirms the existence of long-run relationships. Moreover, this paper highlights the important role of regulatory quality as a governance indicator in improving labor productivity in Jordan, thus the study recommends improving public administration, strengthening governance, and applying the appropriate policies and regulations that promote and enhance national and foreign direct investments, and ensure efficient allocation of resources.},
 year = {2020}
}

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TY  - JOUR
T1  - The Determinants of Labor Productivity in Jordan During the Period 1980-2017
AU  - Elham Mohammad Mustafa Alhaj Yousef
Y1  - 2020/01/27
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200901.13
DO  - 10.11648/j.ijber.20200901.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
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EP  - 28
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200901.13
AB  - This study aims at investigating the long-run and short-run relationships between labor productivity in Jordan and each of capital intensity, wages, trade openness and regulatory quality over the period 1980-2017. All the study variables are found to be stationary at the first difference. Johansen cointegration test revealed that there is a unique cointegrating equation. Therefore, Vector Error Correction Model (VECM) was implemented to estimate the short and long-run effects. The empirical results show that capital intensity, wages and regulatory quality have significant long-run positive impact on Jordanian labor productivity. However, all the independent variables have insignificant short-run effects on labor productivity during the study period. The significant negative coefficient of the error correction term (ECT) confirms the existence of long-run relationships. Moreover, this paper highlights the important role of regulatory quality as a governance indicator in improving labor productivity in Jordan, thus the study recommends improving public administration, strengthening governance, and applying the appropriate policies and regulations that promote and enhance national and foreign direct investments, and ensure efficient allocation of resources.
VL  - 9
IS  - 1
ER  -

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Elham Mohammad Mustafa Alhaj Yousef

Business Economics Department, Faculty of Business, University of Jordan, Amman, Jordan

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Elham Mohammad Mustafa Alhaj Yousef. (2020). The Determinants of Labor Productivity in Jordan During the Period 1980-2017. International Journal of Business and Economics Research, 9(1), 21-28. https://doi.org/10.11648/j.ijber.20200901.13

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ACS Style

Elham Mohammad Mustafa Alhaj Yousef. The Determinants of Labor Productivity in Jordan During the Period 1980-2017. Int. J. Bus. Econ. Res. 2020, 9(1), 21-28. doi: 10.11648/j.ijber.20200901.13

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AMA Style

Elham Mohammad Mustafa Alhaj Yousef. The Determinants of Labor Productivity in Jordan During the Period 1980-2017. Int J Bus Econ Res. 2020;9(1):21-28. doi: 10.11648/j.ijber.20200901.13

Copy | Download

@article{10.11648/j.ijber.20200901.13,
  author = {Elham Mohammad Mustafa Alhaj Yousef},
  title = {The Determinants of Labor Productivity in Jordan During the Period 1980-2017},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {1},
  pages = {21-28},
  doi = {10.11648/j.ijber.20200901.13},
  url = {https://doi.org/10.11648/j.ijber.20200901.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200901.13},
  abstract = {This study aims at investigating the long-run and short-run relationships between labor productivity in Jordan and each of capital intensity, wages, trade openness and regulatory quality over the period 1980-2017. All the study variables are found to be stationary at the first difference. Johansen cointegration test revealed that there is a unique cointegrating equation. Therefore, Vector Error Correction Model (VECM) was implemented to estimate the short and long-run effects. The empirical results show that capital intensity, wages and regulatory quality have significant long-run positive impact on Jordanian labor productivity. However, all the independent variables have insignificant short-run effects on labor productivity during the study period. The significant negative coefficient of the error correction term (ECT) confirms the existence of long-run relationships. Moreover, this paper highlights the important role of regulatory quality as a governance indicator in improving labor productivity in Jordan, thus the study recommends improving public administration, strengthening governance, and applying the appropriate policies and regulations that promote and enhance national and foreign direct investments, and ensure efficient allocation of resources.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Determinants of Labor Productivity in Jordan During the Period 1980-2017
AU  - Elham Mohammad Mustafa Alhaj Yousef
Y1  - 2020/01/27
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200901.13
DO  - 10.11648/j.ijber.20200901.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 21
EP  - 28
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200901.13
AB  - This study aims at investigating the long-run and short-run relationships between labor productivity in Jordan and each of capital intensity, wages, trade openness and regulatory quality over the period 1980-2017. All the study variables are found to be stationary at the first difference. Johansen cointegration test revealed that there is a unique cointegrating equation. Therefore, Vector Error Correction Model (VECM) was implemented to estimate the short and long-run effects. The empirical results show that capital intensity, wages and regulatory quality have significant long-run positive impact on Jordanian labor productivity. However, all the independent variables have insignificant short-run effects on labor productivity during the study period. The significant negative coefficient of the error correction term (ECT) confirms the existence of long-run relationships. Moreover, this paper highlights the important role of regulatory quality as a governance indicator in improving labor productivity in Jordan, thus the study recommends improving public administration, strengthening governance, and applying the appropriate policies and regulations that promote and enhance national and foreign direct investments, and ensure efficient allocation of resources.
VL  - 9
IS  - 1
ER  -

Copy | Download