تأثير الانفتاح التجاري على نسبة هامش الربح في قطاع الصناعة التحويلية الأردني

Abstract EN

The main goal of this study is to analyze the effect of trade openness on the profit margin of the manufacturing sector in Jordan.

To achieve this goal, both descriptive and econometric analyses were deployed on data series spanned over the period 1976-2009.

More specifically, the descriptive analysis used is the before-after approach, while Vector-Error-Correction - Model was used as an econometric technique.

The results showed retrogression in profit margin during the two periods of trade openness (1990-1999) and (2000-2009) in comparison with the period preceding trade openness (1976-1989).

The results also showed better performance in profit margin of the manufacturing sector during the second millennium in comparison with the nineties, especially in the following sub-sectors: food products, clothing and textile products, and chemical and petroleum products.

The econometric analysis also supported these results.

The VECM showed that a long run causal relationship existed between the variables (trade openness, real effective exchange rate, and crude oil price) and profit margin.

The VECM also showed a short run negative and significant effect of trade openness, real effective exchange rate, and crude oil price on profit margin in Jordan manufacturing sector