The Impact of Primary Exports Problems on Jordanian Economic Growth

Authors

  • Qasem Hamouri
  • Mohammad Al-Battainah

Abstract

Jordan is one of the developing countries that suffer from a continuous deficit in its trade balance, which is a chronic economic problem. Despite all of the measures and development plans adopted by successive governments and being their prime target, it did not succeed. In fact, the main reason for this deficit is the structure of the Jordanian economy.

main goal: investigate the impact of the primary exports problems on the Jordanian economic growth during the period (1990-2014).

Data sources:The statistical database of Jordan Central Bank has been used to obtain annual data for: real GDP growth, import unit price index, export unit price index, and Jordanian exports. While the index of the imports value of industrialized countries from developing countries was obtained from the World Bank database. 

Methodology and tools The co-integration test was conducted using ARDon the secondary data which was collected about the Jordanian Primary Exports.

Results: The study found a positive relationship between the instability of the returns of primary exports and the external demand as independent variables, and the Jordanian economic growth as a dependent variable, where the increase of these independent variables by 1% leads to an increase in Jordanian economic growth by 0.696%, 0.437% Respectively. In the light of these results, the study recommended spending further efforts on investigating the problems facing the primary exports, finding more stable markets in terms of prices and demand, and activating the export sector by directing financial and technical support and directing new investments towards this sector.

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Published

2020-01-11

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Articles