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Impact of External Debt on Economic Growth in Jordan for the Period (2010-2017)

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  • Khaled Abdalla Moh¡¯d AL-Tamimi
  • Mohammad Sulieman Jaradat

Abstract

The study investigates the effect of external debt on economic growth in Jordan by using annual data for the period (2010-2017) by using external debt as a percentage of gross domestic product (GDP) as an independent variable, and GDP growth rate (A proxy for economic growth) as a dependent variable. The study starts with theoretical literature for the impact of external debt on economic growth, then empirical literature for previous studies that analyze the same relationship, after that analyzing the impact of external debt on economic growth in Jordan during the period (2010-2017). The study finds the same conclusion as previous studies that there is a negative and significant impact of external debt on economic growth during the study period, and recommends relying on other financing methods like foreign direct investment.

Suggested Citation

  • Khaled Abdalla Moh¡¯d AL-Tamimi & Mohammad Sulieman Jaradat, 2019. "Impact of External Debt on Economic Growth in Jordan for the Period (2010-2017)," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(4), pages 114-118, April.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:4:p:114-118
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    References listed on IDEAS

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    1. Kharusi, Sami Al & Ada, Mbah Stella, 2018. "External Debt and Economic Growth : The Case of Emerging Economy," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 33(1), pages 1141-1157.
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    Cited by:

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    2. Mohsin, Muhammad & Ullah, Hafeez & Iqbal, Nadeem & Iqbal, Wasim & Taghizadeh-Hesary, Farhad, 2021. "How external debt led to economic growth in South Asia: A policy perspective analysis from quantile regression," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 423-437.

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    More about this item

    Keywords

    external debt; economic growth; foreign direct investment; budget;
    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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