محددات نسبة هامش الربح في قطاع الصناعة التحويلية في الأردن

الملخص EN

This paper aims to examine the determinants of price-cost margin ratio in the manufacturing sector in Jordan during the period (1977-2013).

To achieve this goal a vector error correction model has been employed.

The results of vector error correction (VECM) estimation shows that there is a long-run causal relationship between variables (labor productivity, indirect taxes, imports penetration, real effective exchange rate and the crude oil price) and the ratio of price-cost margin.

Furthermore, the short-run deviations will be corrected at a rate of 39% per year.

Also, the results indicate that the real effective exchange rate has a significant and negative impact on price-cost.

In addition, the variance decomposition analysis shows that the large part of the prediction of variation in the percentage of price-cost margin are due to the error prediction in the variable itself, and due to the error in import penetration and indirect taxes.

On another hand, a smaller level of variation is due to the error prediction in the oil price, real effective exchange rate and labor productivity.

The previous results has been supported by impulse response function analysis, which showed that the random shock on the following variables (indirect taxes, import penetration, real effective exchange rate and crude oil price) has negative effect on price-cost margin.

While labor productivity has a positive impact on the price-cost margin in the Jordanian's manufacturing sector.