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The Impact of Government Expenditures on Economic Growth in Jordan (1980-2013)

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  • Torki M. Al-Fawwaz

Abstract

The purpose of this study is to measure the impact of government expenditures on economic growth in Jordan during the period between 1980-2013. To achieve the goal of this study, the multiple linear regression model, linking the study variables was used. Then, the model was analyzed using the OLS model. The results indicate that there is a positive impact for both total government expenditure and current government expenditure on economic growth. This result supports the Keynesian model. Based on the findings of the empirical analysis, the study recommends that capital government expenditure should be directed mainly to current productive economic activities in order to stimulate activities in the economic sectors.

Suggested Citation

  • Torki M. Al-Fawwaz, 2016. "The Impact of Government Expenditures on Economic Growth in Jordan (1980-2013)," International Business Research, Canadian Center of Science and Education, vol. 9(1), pages 99-105, January.
    • Handle: RePEc:ibn:ibrjnl:v:9:y:2016:i:1:p:99-105
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    More about this item

    Keywords

    government expenditures; economic growth; 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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