The purpose of this study is to examine equilibrium relationships and dynamic causality between economic growth (measured as GDP), exports, and imports in Jordan using time-series data between 1976 and 2021. In particular, this research attempts to determine exports-led growth, imports-led growth, growth-led exports, and growth-led imports in both the short-run and long-run. The four time-series datasets, GDP, merchandise exports, merchandise imports, and gross capital formation, were examined using the Dickey–Fuller unit root tests, the Phillips–Perron unit root test, and the Johansen’s trace tests for cointegration. The dynamic properties of the VAR(1) were summarized using Granger causality tests and impulse response functions. The test results showed that the impulse response functions indicated that there might be some short-run relationships among our datasets. The Johansen cointegration tests suggested that the series were not cointegrated, and hence there were no long-term relationships among the time series. It appeared that in the short-run, both GDP and gross capital formation Grangerly caused merchandise exports. A unit shock in merchandise exports, merchandise imports, and gross capital formation caused very small fluctuating responses from GDP, merchandise exports, merchandise imports, and gross capital in the short-run, and the responses approached zero in the long-run.
1 January 2016 in International Journal of Business and Economics Research
This study aims at investigating women empowerment in the Arab region through a comparative investigation using the analytical descriptive methodology. Inevitably, woman is a key and an important contributor to development. Therefore, enhancing her empowerment is a vital driver and a key element for a development process that is sustainable and continuous. Measuring the woman empowerment is crucial for pinpointing the fragility in woman empowerment efforts in the Arab region. The overall index consists of four dimensions: economic, educational, political and healthcare. Data used is retrieved from the Global Gender Gap reports (GGG) for the years 2006-2015. By reviewing the GGG reports for fifteen Arab countries during the last ten years, notably the major Arab accomplishment is in bridging the gender gap in health and education, countered by the breadth of the political and economic participation gaps. The inability of Arab countries to bridge both political and economic gaps is attributable to several political, economic, social and religious factors. Based on the analysis in this paper, the authors suggest several actions to improved the economic contribution and political participation of woman.
This research examines the impact of the COVID-19 pandemic on the volatility behavior of Amman Stock Exchange (ASE) returns using ARMA–GARCH-type models for three sub-periods: pre-COVID-19, during COVID-19, and post-COVID-19. The research finds that volatility persistence is significant across all periods, with the pandemic period showing the highest impact of shocks. Bad news has no statistically significant impact on volatility in the pre-COVID-19 period or during the pandemic, while in the post-pandemic period, good news significantly influences volatility. Additionally, there exist notable changes in the autocorrelation and the shock structure of the AR and MA components. Considering these alterations in the asymmetric effects, the AR and MA components suggest significant shifts in market dynamics, investor sentiments, and economic policies in response to pandemic experiences.
1 July 2024 in Jordan Journal of Economic Sciences
Objectives: The issue of export volatility in the economies of less developed countries (LDCs) is a significant topic of debate in economic literature. This paper aims to investigate the potential effect of export volatility on economic performance in Algeria. Methods: The study utilizes an econometric model to estimate the impact of export volatility on economic growth in Algeria for the period 1992-2016. Additionally, another regression model is used to analyze the effects of fluctuations in export prices and quantities on economic growth in Algeria. Results: The findings show that there is no significant relationship between the export instability index and real GDP. Conclusion: The study concludes that fluctuations in the prices and quantities of exports do not influence Algeria’s real GDP. Policymakers should reduce the dependency of the export sector on oil products and improve industrial performance in Algeria. Implementing price stabilization schemes and allocating more oil precautionary funds are also needed to mitigate any possible damaging effects of export volatility on Algeria’s economy in the future.
1 January 2024 in Jordan Journal of Economic Sciences
Objectives: This study aims to assess the impact of international trade measurements, trade liberalization, and other related variables on the Female Labor Force Participation (FLFP) and Female Employment (FE) in the agricultural, industrial, and services sectors in Jordan from 1990 to 2019. Methods: The study adopts four models and uses the Fully Modified Ordinary Least Square (FMOLS) approach to estimate the effects of International Trade (Trade), Gross Domestic Product per Capita (GDPC), Live Births (LB), Female Enrollment in Secondary School (EFSS), Female Unemployment (FUN), and Jordan’s Accession to the WTO on the FLFP and FE in the three sectors. Results: The empirical results indicate that international trade measurements, Jordan’s WTO accession, EFSS, and FUN have a significantly negative impact on FLFP, except for GDPC which reveals a positive impact on FLFP, while LB proves to be insignificant. Different results were obtained in terms of Female Employment (FE) in the three economic sectors. The trade measurements hurt FE in the agricultural and services sectors, and a positive impact on the industrial sector. Conclusions: One of the most intriguing findings of this study is that Female Employment (FE) in Jordan has experienced adverse impacts due to increased trade openness. Consequently, the government must pursue policies promoting trade openness without adversely affecting FE. This can be achieved by enhancing Female Labor Force Participation (FLFP) through education and training initiatives. Simultaneously, there is a need to consider revising labor laws and regulations. These revisions should unequivocally prohibit gender-based wage discrimination.
This study analyzes the determinants of gross saving in Jordan over the period 1991–2023, with particular attention paid to the role of macroeconomic and demographic factors in shaping saving behavior. The empirical analysis employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to examine both short-run and long-run relationships between gross saving, the age dependency ratio, real per capita GDP growth, real interest rates, and unemployment. The results indicate rapid short-run adjustment dynamics in saving behavior and a stable long-run association between saving and its key determinants. In contrast to standard theoretical predictions, a higher dependency ratio is found to increase gross saving. This outcome appears to reflect Jordan’s socio-demographic context, precautionary saving motives, family-based support mechanisms, limited social security coverage, and the role of remittances. Income growth has a positive effect on saving, while unemployment exerts a negative effect. The real interest rate exhibits limited and transitory short-run effects, while remaining insignificant in the long-run. From a policy perspective, the findings underscore the importance of job creation, sustained income growth, and the development of broader saving instruments.