THE EFFECT OF FREE TRADE LIBERALISATION POLICIES ON THE HUMAN DEVELOPMENT INDEX: EVIDENCE FROM JORDAN FOR THE PERIOD 1990–2021
The policies of development organisations such as the World Bank, IMF and WTO presuppose that trade liberalisation policies have a positive impact on human development in all countries. The main objective of this study is to investigate the effects of trade liberalisation policies on Jordan's human development. In this study, unit root, cointegration and Granger causality tests were performed. The study utilised the ARDL methodology for the period 1990–2021. The results indicate that policies promoting trade liberalisation have a positive effect on human development in Jordan. The impact of international trade on human development in Jordan is significantly positive, surpassing the effects of both exports and imports. At the same time, the positive effects of imports exceed those of exports. This is consistent with the assertions of the development organisations. The effect of FDI on HDI in Jordan is positive, but modest. Finally, we can conclude that trade liberalisation policies have had a positive effect on human development in Jordan from 1991 to 2021.
Free Trade, Liberalisation, Human Development Index, ARDL, Jordan