The Impact of Fiscal Policy and Trade Liberalization on Economic Growth: Evidence from Structural Breaks for Jordan

• Al-kasasbeh, Omar ^[1] ; Alzghoul, Amro ; Alhanatleh, Hasan
  1. [1] Amman Arab University

     Amman Arab University

     Jordania

     
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 7, Nº. 6, 2022
• Idioma: inglés
• DOI: 10.26668/businessreview/2022.v7i6.850
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose: The main purpose of this study is to examine the impact of fiscal policy and trade liberalization on Jordan's economic growth.

    Design/methodology/approach: The study used Augmented Dicky Fuller unit root tests and Kapetanios unit root tests with structural breaks for the empirical investigation.

      Findings: Government spending and taxation have a favourable influence on economic growth, according to the simulation results. Public debt has a negative but negligible effect on economic growth. Economic growth is significantly influenced by trade liberalisation.

      Research implications: The consequence is the proportion of spending on infrastructure and human resources should be increased by taxes financing rather than foreign loans. Improving the competitiveness of domestic industries is necessary for free trade to have a positive effect.

      Originality/value: This study is innovative due to the absence of research that addresses Fiscal Policy, Trade Openness and economic growth with the structural break in Jordan.

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