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The Solvency of the Jordanian Current Account

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  • Mohammad Oqaily
  • Mohammad Alawin

Abstract

This study measured the sustainability of the current account for the Jordanian economy during the period (1990-2017). Intertemporal Solvency Model has been used to know the ability of the government to pay its current obligations of future surpluses. The results of this study show that, in the long run, there is not enough solvency in the current account in Jordan. Thus, the economy of Jordan faces a significant challenge in the future. This challenge comes from the lack of adequate sources for funding the accumulated obligations. Accordingly, the study recommends that the government should adopt economic policies that help reduce the current account deficit by importing the capital goods necessary to support the production and export sectors. These policies will improve the sustainability of the current account.

Suggested Citation

  • Mohammad Oqaily & Mohammad Alawin, 2019. "The Solvency of the Jordanian Current Account," Modern Applied Science, Canadian Center of Science and Education, vol. 13(5), pages 1-78, May.
    • Handle: RePEc:ibn:masjnl:v:13:y:2019:i:5:p:78
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    References listed on IDEAS

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    7. Leachman, Lori L & Thorpe, Michael, 1998. "Intertemporal Solvency in the Small Open Economy of Australia," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 231-242, September.
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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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