The impact of the energy sector on the competitiveness of the manufacturing sector

Abstract

  The study aimed to demonstrate the role of the energy sector in enhancing the competitiveness of the manufacturing sector in Jordan. using panel data for the period (2011-2020). Descriptive and econometrics analysis was used to demonstrate the impact of the energy sector on three main indicators of the manufacturing sector, namely (profit margin index, worker productivity index, and energy efficiency). To assure the reliability and efficiency of the results, the study employed more than one method in the econometrics analysis, namely: generalized method of moment (GMM) and fully modified ordinary least square (FMOLS). The findings showed that the energy sector factors had a negative influence on the profit margin; nevertheless, the effect was significant and positive on labor productivity and energy efficiency.