The effect of labor migration on economic growth : the case of Jordan (1970-2001)‎

Abstract EN

This study is aimed at demonstrating and analyzing guest labor in Jordan as well as Jordanian labor abroad and their effects on economic growth.

It also aimed to explain the effect of guest labor remittances and the remittances of Jordanian labor abroad on economic growth.

The study mainly depended on the descriptive analysis and rarely did on the econometric approach and drew its data from secondary resources published in specific sources.

During the period of this study, the results showed that most of guest labor in Jordan worked in agriculture and construction, at which the possibilities for replacing guest labor were limited because of the reluctance of Jordanian labor to work in such fields.

The study explained that the productivity of a Jordanian worker was about three times of that of a guest worker because of the differences in wages paid to each as well as the differences in the work nature.

Consequently, the replacement process will increase production and promote economic growth.

It also found that unemployment rate was positively correlated with the number of guest labor inside Jordan and negatively with the number of Jordanian workers abroad.

The study indicated that there was a positive effect of the remittances of Jordanians abroad and a negative effect of guest labor remittances on economic growth, while the effect of both national labor and guest remittances labor was positive.

The study also showed that the remittances of Jordanians abroad were directed to private consumption expenditure rather than investment.

Therefore, their effects on economic growth were small because the remittances per worker were very little (ANNEX 2).