IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-02-26.html
   My bibliography  Save this article

The Effect of Trade Openness on Economic Growth in Jordan: An Analytical Investigation (1992-2015)

Author

Listed:
  • Rami Obeid

    (Head of Data Analysis and Management Division, Central Bank of Jordan, Amman, Jordan)

  • Bassam Awad

    (Head of Systemic Risk and Macroprudential Policy Analysis Division, Central Bank of Jordan, Amman, Jordan)

Abstract

This study aims at measuring the effect of trade openness and financial development on economic growth in Jordan based on quarterly data for the period (1992-2015). Two forms were used for measuring the effect of trade openness on economic growth using the Autoregressive Distributed lag model (ARDL). The results showed that there exists a long-term positive effect of trade openness (measured by the ratio of sum of exports and imports to GDP) and financial development (represented by the ratio of both credit extended to the private sector and broad money supply to GDP) on economic growth in Jordan. For the short-term impact, the effect of trade openness and financial development on economic growth was not statistically significant.

Suggested Citation

  • Rami Obeid & Bassam Awad, 2018. "The Effect of Trade Openness on Economic Growth in Jordan: An Analytical Investigation (1992-2015)," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 219-226.
    • Handle: RePEc:eco:journ1:2018-02-26
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6030/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6030/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ansari, M. I., 2002. "Impact of financial development, money, and public spending on Malaysian national income: an econometric study," Journal of Asian Economics, Elsevier, vol. 13(1), pages 72-93.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boglárka Németh & Károly Németh & Jon N. Procter, 2021. "Informed Geoheritage Conservation: Determinant Analysis Based on Bibliometric and Sustainability Indicators Using Ordination Techniques," Land, MDPI, vol. 10(5), pages 1-31, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hong, Law Chee, 2016. "Sectoral Impact of Fiscal Policy in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 81-98.
    2. Kishore G. Kulkarni & Sweta C. Saxena, 2003. "Have the Monetary and Fiscal Policies been Effective in India?," Global Business Review, International Management Institute, vol. 4(2), pages 229-237, August.
    3. Jordan Shan & Jianhong Qi, 2006. "Does Financial Development 'Lead' Economic Growth? The Case of China," Annals of Economics and Finance, Society for AEF, vol. 7(1), pages 197-216, May.
    4. Muhammad Arshad Khan & Abdul Qayyum, 2006. "Trade Liberalisation, Financial Sector Reforms, and Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 711-731.
    5. Ljungwall, Christer, 2005. "State fixed investment and non-state sector growth in China," Journal of Policy Modeling, Elsevier, vol. 27(2), pages 211-229, March.
    6. Hacievliyagil Nuri & Eksi Ibrahim Halil, 2019. "A Micro Based Study on Bank Credit and Economic Growth: Manufacturing Sub-Sectors Analysis," South East European Journal of Economics and Business, Sciendo, vol. 14(1), pages 72-91, June.
    7. Martins Iyoboyi, 2013. "Bank and Non-Bank Financial Deepening and Economic Growth: The Nigerian Experience (1981–2010)," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 42(3), pages 247-272, November.
    8. repec:ipg:wpaper:2014-557 is not listed on IDEAS
    9. Anwar, Sajid & Sun, Sizhong, 2011. "Financial development, foreign investment and economic growth in Malaysia," Journal of Asian Economics, Elsevier, vol. 22(4), pages 335-342, August.
    10. Takashi Fukuda & Jauhari Dahalan, 2012. "Finance-Growth-Crisis Nexus in Asian Emerging Economies: Evidence from VECM and ARDL Assessment," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(2), pages 69-100, August.
    11. Abdul Rafay & Saqib Farid, 2017. "Dynamic Relationship between Islamic Banking System and Real Economic Activity: Evidence from Pakistan العلاقة الديناميكية بين النظام المصرفي الإسلامي والنشاط الاقتصادي الحقيقي: التجربة الباكستانية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 97-116, July.
    12. Ebghaei, Felor, 2014. "Para ve Maliye Politikasının Karşılaştırmalı Analizi: Türkiye için Ekonometrik bir Analiz [Comparative Analysis of Monetary and Fiscal Policy: An Econometric Case Study of Turkey]," MPRA Paper 77892, University Library of Munich, Germany, revised Mar 2017.
    13. Uğur Soytas & Engin Kucukkaya, 2011. "Economic growth and financial development in Turkey: new evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 18(6), pages 595-600.
    14. repec:abd:kauiea:v:30:y:2017:i:2:p:97-116 is not listed on IDEAS
    15. Antoni, 2015. "The dynamic relationship between money supply and economic growth," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(2), pages 78-92, April.
    16. Muhammad Arshad Khan & Abdul Qayyum, 2007. "Trade Liberalisation, Financial Development and Economic Growth," PIDE-Working Papers 2007:19, Pakistan Institute of Development Economics.
    17. Zaman, Khalid & Izhar, Zeeshan & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between financial indicators and human development in Pakistan," Economic Modelling, Elsevier, vol. 29(5), pages 1515-1523.
    18. Omri, Anis & Kahouli, Bassem, 2013. "The nexus between foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," MPRA Paper 82505, University Library of Munich, Germany, revised Oct 2013.
    19. Ansari, M. I. & Ahmed, S. M., 2007. "Does money matter? Evidence from vector error-correction for Mexico," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(1), pages 185-202, September.

    More about this item

    Keywords

    Trade openness; economic growth; Jordan;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2018-02-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.