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Determinants of External Debt in Jordan: An Empirical Study (1990¨C2014)

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  • Torki M. Al-Fawwaz

Abstract

This study aimed at investigating the major determinants influencing the external debt in Jordan during the period (1990-2014). To achieve this goal, annual data has been used during the period study, through applying ARDL model which consist of the dependent (external debt) and independent variables (trade openness, term of trade, exchange rate, and gross domestic product per capita). The study reviled that there is a positive statistically significant effect trade variable on the external debt in the long run, and a negative statistically significant effect for the gross domestic product per capita variable (GDPpc) on the external debt. The study recommended that it is very important to depend on the available recourses in trading rather that depend on external debt.

Suggested Citation

  • Torki M. Al-Fawwaz, 2016. "Determinants of External Debt in Jordan: An Empirical Study (1990¨C2014)," International Business Research, Canadian Center of Science and Education, vol. 9(7), pages 116-123, July.
    • Handle: RePEc:ibn:ibrjnl:v:9:y:2016:i:7:p:116-123
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    References listed on IDEAS

    as
    1. Faraji Kasidi & A. Makame Said, 2013. "Impact of External Debt on Economic Growth: A Case Study of Tanzania," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 3(4), pages 1-6.
    2. Abu Siddique & E A Selvanathan & Saroja Selvanathan, 2015. "The Impact of External Debt on Economic Growth:Empirical Evidence from Highly Indebted Poor Countries," Economics Discussion / Working Papers 15-10, The University of Western Australia, Department of Economics.
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    More about this item

    Keywords

    external debt; trade openness; term of trade; exchange rate; gross domestic product per capita; Jordan;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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