The crisis in Syria since the beginning of the year 2011 had devastating
effects on Syrian economy, which based on the priorities of the war
economy and stopped the economic reform programs and long-term
development plans to move to the social market economy and integration
into the world economy.
This research presents a model to determine the exchange
rate for the Syrian Pound in the long term by using monetary
quantity theory; it uses annual data for the period of 1980 to 2011;
it employs Johansen co-integration technique by using E-View
s
statistic program. The research purpose is to determinate the
equilibrium relationship between Exchange rate of Syrian Pound
and economic indicators in the long term, besides studying the
Granger Causality Test between Exchange rate of Syrian Pound and
economic indicators; and analyzing the correlation relationship Test
between Exchange rate of Syrian Pound and economic indicators.
In light of the rapid developments witnessed by the world of globalization and
integration to the global economy and large developments in information and
communications technology, taking the competitive concept widely watched, and the
developing
countries have taken, including Arab and positioning themselves for the Twins
and these developments for the benefit of private pursuing policies and reforms that create
habitat advantages Economic appropriate to enhance their competitiveness in an open
world to trade and to foreign investment. On this basis, Syria has adopted the concept of
competitiveness in order to raise the level of performance of public institutions and the
business sector, and work to create more investment opportunities that would contribute to
enhance their competitiveness. Find it and mainly aimed at the Syrian site within the
competitive indicators according to international reports, highlighting the ranking
compared to other Arab countries.
Adopted the Syrian economy , which has seen an interference large part of the State , the public sector, which is employing a workforce in various sectors of the economy , and the issuance of the Legislative Decree No. / 7/ 2007 on the promotion of i
nvestment and had been preceded by Law No. / 10 / of 1991, evidence of awareness the need for change in the economic policies and a legal framework to attract foreign direct investment , because this kind of investments have the potential to diversify the economy and develop it at the lowest cost, create jobs , and bring in capital and expertise and assistance on the development of geographic regions varied. In case of setting conditions for the foreign direct investments serve the national economy.
The research found that there is a role for foreign direct investment on the process of economic development in the Syrian Arab
Republic on the basis of the results of the field survey.
