Investment in Manufacturing Industries and Their Impact on the Food Sector in Jordan

Abstract

Purpose: This research aims to demonstrate the impact of manufacturing growth, exports, and the GDP deflator on the food industry. Furthermore, it examines the influence of manufacturing growth on the food industry from 1983 to 2021. Theoretical Framework: It should be highlighted that the global financial crisis, notably in the industrial sector, including the food sector, has had a negative impact on economic performance in 2021 (Central Bank, 2022). Jordan is still suffering from the economic consequences of events in neighboring nations. Design/Methodology/Approach: The methods utilized in this study include descriptive methods and statistical analysis, which allow for the examination of the parameters impacting the research issue and the description and measurement of the relationship between them. Findings: It is proven that the processing sector's production volume positively impacts the food industry by testing the hypotheses based on the research results. The GDP deflator has a positive impact on the food industry as well. Research, Practical & Social Implications: It is advised that the food sector be given serious consideration as it has a significant impact on the country's economy and that several studies and research relating the GDP deflator to various other economic sectors be presented in order to identify and contrast the most significant economic sectors. Originality/Value: The findings demonstrated that the expansion of exports in all economic sectors has a detrimental effect on the expansion of the food industry. The study also demonstrated that the impact of the GDP deflator on the food industry is favorable. It is advised that serious attention be paid to the food sector because it significantly impacts the country's economy. Research and studies that link the GDP deflator to various other economic sectors should be presented to identify and contrast the most significant economic sectors.