Search results

The present study investigates the dynamic effects of domestic credit measured by claims on non financial public enterprises and claims on private sector on the real GDP in Jordan for the period 1970‐2002. The stationarity properties and the order of integration of the data employed were empirically examined using the Augmented Dickey‐Fuller test. The cointegration test proposed by Johansen was also employed to test for the existence of longrun relationship among the non stationary time series data. The result of the cointegration test suggests that there exists a cointegrating relationship between real GDP and claims on private sector. The short‐run and long‐run relationships between real GDP and claims on private sector were examined using the VEC technique. In the short run, real GDP turns out to have an impact which is statistically significant on the claims on private sector, while in the long run, the claims on private sector turn out to affect real GDP at the 1% significance level.

This study aims to measure and analyze the impact of both Foreign Direct Investment (FDI) and Imports (M) on the Economic Growth (EG) of Jordan, over the period (1976‐2003). To achieve this, a production function was utilized by using FDI and Imports as two distinct factors among other factors of production. This study examines the relationship between variables (FDI, M and EG) through Vector Autoregression (VAR). The estimated results indicate the existence of bidirectional relationships between FDI and output, and between imports and output as well. The same bidirectional causal relationship exists also between FDI and imports. The results show that FDI affect human capital indirectly through gross domestic output, while, on the other hand, human capital affect FDI indirectly through domestic capital and imports. The results emphasize and support the FDI and import‐Led Growth Hypothesis for Jordan.