The Impact of Fiscal Policy on the Economic Growth of Jordan

Abstract

The present study examined the impact of fiscal policy measured by (Government expenditure, Government revenue, internal public debt, external public debt) in addition to exports and inflation factors on the Jordanian GDP growth for the period 1990-2010. The study used multiple linear regression and least squares method (ols) to test the study hypotheses. The study found that government expenditure, exports and government revenues has a positive and significant impact on the Jordanian GDP growth, and negative and significant impact on the Jordanian GDP growth. The study found that external public debt has a negative but not significant impact on the Jordanian GDP growth.

Key words:  Fiscal policy, government expenditure, government revenues, internal public debt, external public debt, inflation, GDP growth, multiple linear regression, least squares method