Econometric Analysis of Some Competitiveness Indicators in the Jordanian Potash Industry: Evidence from the Arab Potash Company

Authors

  • Mohammad H. Saleh Department of Finance, The University of Jordan, Aqaba, Jordan
  • Mousa Mohammad Abdullah Saleh Department of Financial and Administrative Sciences, Al-Balqa Applied University, Aqaba, Jordan 77110
  • Muneer Mohamad Falah Jaradat Department of Financial and Administrative Sciences, Al-Balqa Applied University, Jordan.
  • Jwaifel, Abdullah Mahmoud Yousef Ministry of Finance, Jordan Customs Department- Abdalli, Headquarters
  • Omar Jawabreh Department of Hotel Management, The University of Jordan, Aqaba, Jordan

Keywords:

Competitiveness, Potash Industry, Operational, Allocative, Efficiency, ARDL, Granger Casualty, Jordan.

Abstract

This research conducted an economic analysis of competitiveness indicators within the Jordanian potash industry from 1990 to 2022. Utilizing ARDL, FMOLS, DOLS, and CCR econometric methods, the study aimed to assess volume efficiency, operational efficiency, and allocative efficiency along with their determinants. Findings indicated decreasing returns to scale in the Jordanian potash industry. The ARDL model revealed a long-term equilibrium relationship between operational efficiency and its determinants. Moreover, a direct association between exports and profits was observed, along with an inverse relationship between profits and both costs and production volume. Lastly, Granger causality analysis indicated a unidirectional causal relationship from profits to production.

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Published

2023-12-21

Issue

Vol. 46 No. 132 (2023): September-December (2023)

Section

Articles