HYPERLINK "http://www.sciencedirect.com/science/article/pii/0261560684900172" Murphy (1984) a high correlation between investment and saving rates across OECD countries can be symmetrical with a high degree of capital mobility. Many studies prove that the regression coefficient of saving on investment is small in the developing countries. Similarly, (Kasuga, 2004) demonstrates that this finding and higher saving–investment correlation in OECD countries can be explained by differences in financial structure across countries ( HYPERLINK "http://www.sciencedirect.com/science/article/pii/0261560684900172" Murphy, 1984) .
Wacziarg and Vamvakidis (1998) provide many reasons why the Feldestien- Horioka results may change in the case of the developing countries. In this regard, and as migration takes place in both the developing and developed countries, thus, the absence of capital controls, capital is then expected to move fundamentally between countries which belong to different economic power classification. They also indicate that when the factor grants are almost similar across the countries, the trade in goods can achieve similar outcomes resulting from the trading in the factors and because the factor prices are equalized, the result will lead to factors facing lesser incentives to moving internationally Wacziarg and Vamvakidis (1998).
An important study in this respect by Bosworth and Collins (1999) which they indicate that for the period 1978-1995, a dollar of external flows raised domestic investment by more than 50 cents on average; additionally, the foreign direct investment component of external flows had an even stronger impact on host country investment Bosworth and Collins (1999) .
Rappaport (2000) points out that an average adjustment cost which is convex with respect to the rate of gross investment calibrates successfully a neoclassical growth model to match real world observables including the transition paths of convergence speed, the shadow value of capital, interest rates, and savings rates (Rappaport , 2000).
Kaminsky (2005) makes clear with the debate over the expansion of globalization phenomenon and being the international capital markets erratic in another economist's viewpoint. He found that there was no optimal policy to deal with the risks in the fluctuations in the international capital flows where the short-run policies may not work properly if they were set to the long run. He also point out that currency and banking crises tend to happen in the deteriorated fundamentals, conservative macroeconomics should be taken into consideration when with fluctuating capital flows (Kaminsky ,2005).
Examining the capital flows-domestic investment relationship for 60 developing countries from 1979 to 1999 was the purpose of a study by Mody and Murshid (2005). In the 1990s, even as liberalization attracted new flows, foreign capital stimulated less domestic investment than in the preceding decade. They indicated that with greater financial integration, governments in these countries accumulated more international reserves and domestic residents diversified by investing abroad and Foreign investors were also motivated by diversification objectives rather than by unmet investment needs. Above that, they found that Inflows were channeled increasingly through portfolio flows—or through foreign direct investment with the characteristics of portfolio capital—resulting in weak investment stimulus (Mody and Murshid ,2005).
Prasad et al (2006) characterized the patterns of capital flows in the wealthy and impoverished countries. It is axiomatic to say that traditional economic models predict that capital should flow from capital-rich to capital-poor economies. The researchers found that, in 2000 decade, capital has been flowing in the opposite direction, although foreign direct investment flows do behave more in line with theory. What they came up with was contrary to their predictions where non-industrial countries that were dependent more on foreign finance have not grown faster in the long run (Prasad et al, 2006).
Feldstein & Horioka (2009) point out to the domestic saving in a closed economy like Jordan as they say that the pretax marginal product of the capital should have an impact on the policy of national saving in the closed economies because the individuals receive a net yield but lowered by taxes; all parts in the country receive the after-tax yield and the tax revenue (Feldstein & Horioka ,2009).
The earlier discussion of the three major types of the international capital flows needs some clarifications. Interestingly, FDI and FPI are supposedly more stable and thus less subject to reversals as they have equity-like features. By contrast, FDI seems more beneficial than other types of financial flows because it comes with more direct control of management while FPI lacks the element of lasting interest and control; debt flows consisting of bank loans and bonds, are regarded as more volatile compared to the aforementioned flows (Kirabaeva and razin, 2009).
Examining the significance of the rate of return to equity as a ratio of accrual basis and the cash flow to equity as a ratio of cash basis in analyzing the financial performance of the industrial public shareholding companies in Jordan and the association between the accounting rate of return to equity, the cash flow to equity and the influence on stock market prices, Al-Khadash (2010) was aiming to examining whether the accounting rate of return (based on the accrual basis) or the cash flow (based on the cash basis) has more impact on companies stock prices.the study sample consisted 26 jordanian industrial public shareholding companies that are listed on the Amman Stock Exchange Market for the period 1993-2002. The researcher found that there was a significant relationship between both tested models, and revealed that the cash flow to equity is more related to stock prices in comparison with accounting rate of return to equity (Al-Khadash ,2010) .
Madfouni (2012) investigated the effect of capital structure and the property on the free fiscal inflows for 56 industrial companies listed in the international market of Amman during the years (2000-2009). She used the Simultaneous equations to estimate the regression equations. She found that Industrial companies in Jordan maintains a very low percentage of free cash flow was estimated 5%, as this implies its inability to Provide internal funding needed to finance the investment opportunities, also the study revealed that Institutional ownership may be a substitute for debt in reducing the administration's ability to use those Private flows to its interests at the expense of the owners, where the debt increases the quantity of theses flows. It assured also on a presence of positive relationship between the free financial flows and the financial leverage (Madfouni ,2012).
Al-Omar et al. (2013) point out that interest rate has a considerable impact on the domestic saving as the increase in the interest rate at the expense of the saving rate with the national currency, supposing the stability of the other elements, encourages the domestic saving as a result of increase in the returns and vice versa (Al-Omar et al. 2013).