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Measuring the Impact of Economic Stability and Remittances of Overseas Workers on Bank Deposits: the Case of Jordan

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  • Amjad Qwader
  • Ateyah Alawneh

Abstract

This study aims at measuring the impact of economic stability represented by (Inflation rate, Economic growth) and remittances of overseas workers on bank deposits in Jordan during the period (2000-2015).The study used the multiple linear regression method by the (E-views) program  to study the impact of the independent variables on the dependent variables. Statistical analysis showed the presence of a statistically significant, positive correlation for both the rate of inflation and workers' remittances on current deposits, saving deposits and time deposits. The statistical analysis also showed that there is a statistically significant, negative correlation between economic growth rate on current deposits, saving deposits and time deposits.The study reached a number of recommendations, most important is- the need for local banks administration to take into consideration the economic factors and variables, including inflation, economic growth and remittances of overseas workers, which directly affect the bank deposits in Jordan, study their evolution and forecast their future value to take various measures that will be positively reflected on the growth of bank deposits.Another recommendation is the need for local banks administration to attract more remittances of overseas workers, through genuine and honest programs that provide benefits for overseas workers and the bank alike.

Suggested Citation

  • Amjad Qwader & Ateyah Alawneh, 2017. "Measuring the Impact of Economic Stability and Remittances of Overseas Workers on Bank Deposits: the Case of Jordan," Accounting and Finance Research, Sciedu Press, vol. 6(2), pages 1-45, May.
    • Handle: RePEc:jfr:afr111:v:6:y:2017:i:2:p:45
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    References listed on IDEAS

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    1. Erna Rachmawati & Ekki Syamsulhakim, 2004. "Factors Affecting Mudaraba Deposits in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200404, Department of Economics, Padjadjaran University, revised Aug 2004.
    2. Otu Larbi-Siaw & Peter Angmor Lawer, 2015. "Determinants of Bank Deposits in Ghana: A Cointegration Approcah," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 2(1), pages 1-7.
    3. Otu Larbi-Siaw & Peter Angmor Lawer, 2015. "Determinants of Bank Deposits in Ghana: A Cointegration Approcah," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 2(1), pages 1-7.
    4. Boyd, John H. & Levine, Ross & Smith, Bruce D., 2001. "The impact of inflation on financial sector performance," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 221-248, April.
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    More about this item

    JEL classification:

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

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