In this paper, the microfinance services are evaluated in the context of small-scale businesses in Jordan. The aim of this study is to emphasize on the importance of factors related to micro-finance as it helps in enhancing the firm's performance. This study utilizes a quantitative approach to conduct a research on approximately 308 small-scale businesses. The study employs a method of confirmatory component analysis (CFA) held by applied Structure Equation Modelling (SEM) to achieve the research objective. The results demonstrate that performance was significantly associated with various micro-finance services such as training for managers, training skills, and loan size. In particular, micro-finance programs should be considered by small entrepreneurs, microfinance institutions, and policy makers. Thus, the contribution of this work is the incorporation of micro-finance factors on SMEs performance. Managers of the SMEs will find guidance about which micro-finance factors is the most important for them to be considered in their roles and for improving SMEs performance.
This paper investigates both long-run and short-run elasticities between gross domestic product and foreign direct investment (FDI) in Jordan. Annual data have been used in order to explore the relationship between foreign direct investments (FDI) with economic growth for the period 1992-2013. Data were collected for both variables (FDI and GDP) from the World Bank and World Development Indicators, and the Autoregressive Distributed Lag Model (ARDL) approach was used. The results show long-run and short-run elasticities in foreign direct investment (FDI) and GDP. The results indicate that Jordanian policy makers focus their efforts to attract more FDI to Jordanian economy. This is because more FDI is expected to lead to a decrease in economic obstacles in Jordan (e.g., increased level of investment, decreased unemployment rate).
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