DOI: 10.5176/2010-4804_2.3.216
Authors: Dr. Moh'd Mahmoud Ajlouni
Abstract:
The purpose of this study is to investigate Jordan’s current fiscal conditions, development, and its effect on the economy in the context of a fragile recovery from the global financial crisis 2008 (GFC). It examines the relationship between before and after grants fiscal deficit and economic growth and analyzes the past trends of the major fiscal variables and policy measures. The results suggest that before (after) grants fiscal deficit yields a weakly positive (negative) correlation with GDP growth, in short and long term alike. Therefore, this supports the Neo-Ricardian viewpoint of neutral effect of fiscal deficit on
economic growth.
Keywords: Fiscal Deficits, Economic Growth, Global Financial
Crisis, Jordan
Updating...