Effect of Payment Balance and Current Account on Deficit of Jordanian Budget (1992 -2012 ) through Johansen Co integration Method

Abstract

Jordanian government as other developed countries implemented or envisaging fiscal operations to improve the budgetary figures  , this paper aimed  to check the impact of deficit current account and deficit of payment balance of Jordan government data of budget from 1992 up 2012  , the paper concentrate on assessing the impact of fiscal adjustment  which followed  by the government during the period from 1996 -1999 and the events after this period up to 2012, also to check the impact of government policies on Jordanian net worth through the changes in government balance sheet and fiscal imbalances and output projections, otherwise these represents through the budget deficit , co integration  of johnsen – jousloius  method used to have the short term and long run relationship in data . major results that there is one  co integration  and there is long relationships between variables in the study . if there is no remediates to budget deficit  , the dynamic relationships are   available .

Key words : Jordan budget , payment balance ,current account deficit , co integration , johnsen – josloius method .