Abstract :

This study aimed to measure the determinants of competitiveness in the pharmaceutical industries sector in Jordan during the period (1986-2016). Two models were used. The first relates to studying the determinants of price competitiveness, and the second relates to studying the determinants of non-price competitiveness. The study used the Autoregressive Distributed Lag model (ARDL) method to test the study hypotheses. The results indicated that there is a strong effect of price competitiveness represented by the profit margin ratio on non-price competitiveness, represented by the total factor productivity. However, there was no effect of non-price competitiveness on price competitiveness. The results also showed a negative impact of import penetration and oil prices on the profit margin ratio of the Jordanian pharmaceutical industries. As for the total factor productivity, it was positively affected by the increase in workers compensation, while the increase in the number of workers had a negative impact on the total factor productivity.