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The Impact of Government Expenditures on Unemployment: A Case Study of Jordan

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  • Shadi Saraireh

Abstract

In this paper, we estimate the effects of Government spending on unemployment in Jordan for the period 1990 to 2019. By using the ARDL co-integration test we found a negative and statistically significant long-run relationship between government spending and the unemployment rate in Jordan. An increase in government spending by a per cent of GDP is found to reduce unemployment by about 0.43 percentage points in the same year. We also noticed that, in the short-run, government spending has a positive and significant impact on unemployment.

Suggested Citation

  • Shadi Saraireh, 2020. "The Impact of Government Expenditures on Unemployment: A Case Study of Jordan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(3), pages 189-203.
    • Handle: RePEc:asi:ajemod:v:8:y:2020:i:3:p:189-203:id:363
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    Cited by:

    1. Orkun ÇELIK & Elif ERER, 2021. "The Role of Gender in the Government Expenditure and Unemployment Nexus: An Investigation at Regional Level for Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 112-128, June.
    2. Liu, Zhen & Ngo, Thanh Quang & Saydaliev, Hayot Berk & He, Huiyuan & Ali, Sajid, 2022. "How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach," Economic Systems, Elsevier, vol. 46(4).

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