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The Impact of Government Expenditures on Unemployment: A Case Study of Jordan

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  • Shadi Saraireh

Abstract

In this paper, we estimate the effects of Government spending on unemployment in Jordan for the period 1990 to 2019. By using the ARDL co-integration test we found a negative and statistically significant long-run relationship between government spending and the unemployment rate in Jordan. An increase in government spending by a per cent of GDP is found to reduce unemployment by about 0.43 percentage points in the same year. We also noticed that, in the short-run, government spending has a positive and significant impact on unemployment.

Suggested Citation

  • Shadi Saraireh, 2020. "The Impact of Government Expenditures on Unemployment: A Case Study of Jordan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(3), pages 189-203.
    • Handle: RePEc:asi:ajemod:v:8:y:2020:i:3:p:189-203:id:363
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    Cited by:

    1. Liu, Zhen & Ngo, Thanh Quang & Saydaliev, Hayot Berk & He, Huiyuan & Ali, Sajid, 2022. "How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach," Economic Systems, Elsevier, vol. 46(4).
    2. Abdulkadir Muktar Nur & Jimoh Olajide Raji, 2025. "The Impact of Foreign Direct Investment on Unemployment in Mena Region," Journal of Economics and Behavioral Studies, AMH International, vol. 17(1), pages 9-20.
    3. Orkun ÇELIK & Elif ERER, 2021. "The Role of Gender in the Government Expenditure and Unemployment Nexus: An Investigation at Regional Level for Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 112-128, June.
    4. Wamagata Kairu & Dr. Duncan Ochieng Elly & Dr. Herick Ondigo Ochieng, 2025. "The Moderating Effect of Trade Openness on the Relationship between Public Expenditure and Economic Security," European Journal of Business and Strategic Management, International Peer Review Journals and Books, vol. 10(4), pages 50-73.

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