The Intricate Relationships between Key Macroeconomic Variables and Economic Growth in Jordan

Nevin Youssef Kalbouneh; Hussein Ali Al-Zeaud; Bashar Younis Alkhawaldeh; Mohammad Abdel Mohsen Al-Afeef

著者

Nevin Youssef Kalbouneh Assistant Professor, Department of Banking and Finance, Faculty of Business, Jerash University, P. O. Box 26150, Jerash, Jordan
Hussein Ali Al-Zeaud Professor of finance and economics, Departments of Finance and Economics, Al al-Bayt University, Mafraq 25113, Jordan
Bashar Younis Alkhawaldeh Assistant Professor, Department of Administrative Sciences, Faculty of Business, Jerash University, PO. Box 26150, Jerash, Jordan https://orcid.org/0000-0002-4921-5702
Mohammad Abdel Mohsen Al-Afeef Full Professor, Department of Banking and Finance, Faculty of Business, Jerash University, P. O. Box 26150, Jerash, Jordan

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AARDL##common.commaListSeparator## Economic growth##common.commaListSeparator## Jordan##common.commaListSeparator## Key macroeconomic variables

要旨

This study looks at the complex interactions between key macroeconomic factors such the money supply, revenue from taxes, interest rate, and government expenditure and how these affects economic growth in Jordan. The study uses the reliable Augmented Autoregressive Distributed Lag (AARDL) model to detect both the short-term and long-term dynamics of these variables across the extensive time period from 1970 to 2022. The study's findings offer fascinating new perspectives on Jordan's economic environment. In both short-run and long-run scenarios, it is discovered that the money supply and interest rates continually have a large and detrimental effect on economic growth. Contrarily, revenue from taxes and government expenditures are found to be important stimuli for economic growth, with effects that are consistently favourable and statistically significant in both the short- and long-term. The economic policymakers in Jordan can benefit greatly from these results. They emphasise the significance of solid fiscal policies built on effective taxation and wise public spending. The study also clarifies the difficult interaction between monetary and fiscal policy and highlights the necessity of coordination and modification of such policies in determining Jordan's economic direction.