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Stability of Economic Growth Rates in Jordan: Measurement and Analysis

Received: 1 April 2020     Accepted: 20 April 2020     Published: 14 May 2020
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Abstract

Jordan's economy faces several difficulties and challenges. These challenges and difficulties are represented by the small size of the economy on the one hand and the scarcity of its financial and natural resources on the other. These two problems and others have forced the Jordanian economy to be dependent on the outside in several areas. Which in turn made the economy easily exposed to external shocks, whether economic or political. So that this study was mainly aimed at demonstrating the extent to which the Jordanian economy has been affected by external events. To achieve this goal, data were used for the period 1976-2018. Two approaches were applied, one descriptive while the second is econometrics. Stability has been measured and analyzed for long and short periods in three dimensions: GDP growth rates, value-added growth rates by sectors: agricultural, mining, industrial, construction, and services. Growth rates for aggregate demand components: private consumption, government spending, investment, exports, and imports. The results indicated the ability of the Jordanian economy to adapt and absorb shocks from abroad, and the results also showed that instability increases as the economy faces external crises. Finally, the results showed that the stability of GDP growth is linked to the stability of the services sector.

Published in International Journal of Business and Economics Research (Volume 9, Issue 3)
DOI 10.11648/j.ijber.20200903.15
Page(s) 125-129
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Economic Growth, Economic Growth Stability, Macroeconomic Stability, Jordan Economy, External Shock

References
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[3] Liew, Venus Khim-Sen, Racquel Anak Rowland, Puah Chin Hong, Jerome Kueh Swee Hui, Rossazana Bt Ab Rahim, Shirly Wong Siew Ling. (2018). Macroeconomic Instability Index and Malaysia Economic Performance. International Business Research, 11 (3), 179-185.
[4] Gulay, Emrah. (2019). The nexus prevalent in nonlinear finance and growth in the presence of macroeconomic instability in turkey: Does the stock market really matter? Business and Economic Horizons, 15 (1), 1-19.
[5] Haghighi, Karnameh., Majid Sameti & Rahim Dallali Isfahani (2012). The Effect of Macroeconomic Instability on Economic Growth in Iran. Research in Applied Economics, 4 (3), 39-61.
[6] Ahangari, Abdolmajid., and Aziz Saki. (2012). A study on the effect of macroeconomics instability index on private investment in Iran. Management Science Letters, 2, 1939–1946.
[7] Olaniyan O. (2000) The Effects of Instability on Aggregate Investment in Nigeria. The Nigerian Journal of Social and Economic Studies, 42 (1), 23-26.
[8] Shamshir, Musarrat. Samina Sabir, and dr. rukhsana khan. (2019). Impact of Macroeconomic Stability and Terrorism on Foreign Direct Investment in Pakistan. New Horizons, 13 (2), 223-240.
[9] Somoye, Russell Olukayode Christopher, and Bamidele Ilo M. (2009). The Impact of Macroeconomic Instability on the Banking Sector Lending Behaviour in Nigeria. Journal of Money, Investment and Banking, Issue 7, 88-100.
[10] Talavera Oleksandr; Tsapin Andry; Zholud Oleksandr (2006) Macroeconomic uncertainty and Bank Lending: The Case of Ukraine. German Institute for Economic Research Discussion Paper Series 637. November pp. 1-24.
[11] Baum, Christopher F, Mustafa Caglayan and NeslihanOzkan (2005) The Second Moment Matter: The Response of Bank Lending Behaviour to Macroeconomic Uncertainty. www.gla.ac.uk/media/media_22217_en.pdf
[12] Yapraklı, Sevda, Kaplan, Fatih and Yavuz, Nilgün Çil (2014), The Impacts Of Instıtutıons, Openness And Macroeconomıc Stabılıty On Economıc Growth: A Panel Data Analysıs On Mıddle Income Countrıes, Journal of Econometrics and Statistics. 18 (20), 104-123.
[13] Tatiana Vasylieva, Sergij Lyeonov, Oleksii Lyulyov and Kostiantyn Kyrychenko (2018) Macroeconomic Stability and Its Impact on the Economic Growth of the Country, Montenegrin Journal of Economics, Vol 14, Iss 1, 159-170.
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[16] Agus Arifin, F. X. Sugiyanto, Wahyu Widodo, and Firmansyah Firmansyah, (2017), Macroeconomic Stability in Indonesia: Fiscal and Monetary Policies' Framework, International Journal of Economic Perspectives, Volume 11, Issue 4, 341-350.
Cite This Article
  • APA Style

    Yaseen Altarawneh, Saeed Mahmoud, Alaaeddin Al-Tarawneh. (2020). Stability of Economic Growth Rates in Jordan: Measurement and Analysis. International Journal of Business and Economics Research, 9(3), 125-129. https://doi.org/10.11648/j.ijber.20200903.15

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    ACS Style

    Yaseen Altarawneh; Saeed Mahmoud; Alaaeddin Al-Tarawneh. Stability of Economic Growth Rates in Jordan: Measurement and Analysis. Int. J. Bus. Econ. Res. 2020, 9(3), 125-129. doi: 10.11648/j.ijber.20200903.15

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    AMA Style

    Yaseen Altarawneh, Saeed Mahmoud, Alaaeddin Al-Tarawneh. Stability of Economic Growth Rates in Jordan: Measurement and Analysis. Int J Bus Econ Res. 2020;9(3):125-129. doi: 10.11648/j.ijber.20200903.15

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  • @article{10.11648/j.ijber.20200903.15,
      author = {Yaseen Altarawneh and Saeed Mahmoud and Alaaeddin Al-Tarawneh},
      title = {Stability of Economic Growth Rates in Jordan: Measurement and Analysis},
      journal = {International Journal of Business and Economics Research},
      volume = {9},
      number = {3},
      pages = {125-129},
      doi = {10.11648/j.ijber.20200903.15},
      url = {https://doi.org/10.11648/j.ijber.20200903.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200903.15},
      abstract = {Jordan's economy faces several difficulties and challenges. These challenges and difficulties are represented by the small size of the economy on the one hand and the scarcity of its financial and natural resources on the other. These two problems and others have forced the Jordanian economy to be dependent on the outside in several areas. Which in turn made the economy easily exposed to external shocks, whether economic or political. So that this study was mainly aimed at demonstrating the extent to which the Jordanian economy has been affected by external events. To achieve this goal, data were used for the period 1976-2018. Two approaches were applied, one descriptive while the second is econometrics. Stability has been measured and analyzed for long and short periods in three dimensions: GDP growth rates, value-added growth rates by sectors: agricultural, mining, industrial, construction, and services. Growth rates for aggregate demand components: private consumption, government spending, investment, exports, and imports. The results indicated the ability of the Jordanian economy to adapt and absorb shocks from abroad, and the results also showed that instability increases as the economy faces external crises. Finally, the results showed that the stability of GDP growth is linked to the stability of the services sector.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Stability of Economic Growth Rates in Jordan: Measurement and Analysis
    AU  - Yaseen Altarawneh
    AU  - Saeed Mahmoud
    AU  - Alaaeddin Al-Tarawneh
    Y1  - 2020/05/14
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijber.20200903.15
    DO  - 10.11648/j.ijber.20200903.15
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
    SP  - 125
    EP  - 129
    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20200903.15
    AB  - Jordan's economy faces several difficulties and challenges. These challenges and difficulties are represented by the small size of the economy on the one hand and the scarcity of its financial and natural resources on the other. These two problems and others have forced the Jordanian economy to be dependent on the outside in several areas. Which in turn made the economy easily exposed to external shocks, whether economic or political. So that this study was mainly aimed at demonstrating the extent to which the Jordanian economy has been affected by external events. To achieve this goal, data were used for the period 1976-2018. Two approaches were applied, one descriptive while the second is econometrics. Stability has been measured and analyzed for long and short periods in three dimensions: GDP growth rates, value-added growth rates by sectors: agricultural, mining, industrial, construction, and services. Growth rates for aggregate demand components: private consumption, government spending, investment, exports, and imports. The results indicated the ability of the Jordanian economy to adapt and absorb shocks from abroad, and the results also showed that instability increases as the economy faces external crises. Finally, the results showed that the stability of GDP growth is linked to the stability of the services sector.
    VL  - 9
    IS  - 3
    ER  - 

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Author Information
  • Business Economics Department, School of Business, University of Jordan, Amman, Jordan

  • Business Economics Department, School of Business, University of Jordan, Amman, Jordan

  • Business Economics Department, School of Business, University of Jordan, Amman, Jordan

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