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Stability of Economic Growth Rates in Jordan: Measurement and Analysis
International Journal of Business and Economics Research
Volume 9, Issue 3, June 2020, Pages: 125-129
Received: Apr. 1, 2020; Accepted: Apr. 20, 2020; Published: May 14, 2020
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Authors
Yaseen Altarawneh, Business Economics Department, School of Business, University of Jordan, Amman, Jordan
Saeed Mahmoud, Business Economics Department, School of Business, University of Jordan, Amman, Jordan
Alaaeddin Al-Tarawneh, Business Economics Department, School of Business, University of Jordan, Amman, Jordan
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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.
Keywords
Economic Growth, Economic Growth Stability, Macroeconomic Stability, Jordan Economy, External Shock
To cite this article
Yaseen Altarawneh, Saeed Mahmoud, Alaaeddin Al-Tarawneh, Stability of Economic Growth Rates in Jordan: Measurement and Analysis, International Journal of Business and Economics Research. Vol. 9, No. 3, 2020, pp. 125-129. doi: 10.11648/j.ijber.20200903.15
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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