A Study for the Factors Affecting the Value Added for Jordanian Industries

Abstract

The aim of this study was to classify the Jordanian industries based on their value added into: high, medium and law value-added industries according to a precise statistical method and also to identify the factors affecting the industrial vale added in Jordan. The results of this study showed that the high value added industries in Jordan were mainly Mining and quarrying, and Manufacture Tobacco Products, whereas the low value added industries include Manufacture of Food Products and Manufacture of Paper and Paper Products. The analysis results showed that the most important factors responsible for the high value-added industries in Jordan include: the existence of effective and highly efficient management, availability of money, and relying on local raw materials. It also showed that the most important factors responsible for the low value-added in the industry include: high operating expenses for the factory, relying on the old machines, and a shortage of money for the factories’ owners.