The Role of Government Capital Expenditures in Economic Growth in Jordan

Basema Al-Sharif; Adel Bino

doi:doi:10.11648/j.ijber.20190802.15

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The Role of Government Capital Expenditures in Economic Growth in Jordan

Basema Al-Sharif, Adel Bino

Published in International Journal of Business and Economics Research (Volume 8, Issue 2)

Received: 22 February 2019 Accepted: 12 April 2019 Published: 23 May 2019

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Abstract

This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 2)
DOI	10.11648/j.ijber.20190802.15
Page(s)	69-77
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Economic Growth, Capital Expenditures, Gross Fixed Capital Formation, Net Tax, Government Debt

References

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APA Style

Basema Al-Sharif, Adel Bino. (2019). The Role of Government Capital Expenditures in Economic Growth in Jordan. International Journal of Business and Economics Research, 8(2), 69-77. https://doi.org/10.11648/j.ijber.20190802.15

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ACS Style

Basema Al-Sharif; Adel Bino. The Role of Government Capital Expenditures in Economic Growth in Jordan. Int. J. Bus. Econ. Res. 2019, 8(2), 69-77. doi: 10.11648/j.ijber.20190802.15

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AMA Style

Basema Al-Sharif, Adel Bino. The Role of Government Capital Expenditures in Economic Growth in Jordan. Int J Bus Econ Res. 2019;8(2):69-77. doi: 10.11648/j.ijber.20190802.15

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@article{10.11648/j.ijber.20190802.15,
  author = {Basema Al-Sharif and Adel Bino},
  title = {The Role of Government Capital Expenditures in Economic Growth in Jordan},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {2},
  pages = {69-77},
  doi = {10.11648/j.ijber.20190802.15},
  url = {https://doi.org/10.11648/j.ijber.20190802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190802.15},
  abstract = {This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.},
 year = {2019}
}

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TY  - JOUR
T1  - The Role of Government Capital Expenditures in Economic Growth in Jordan
AU  - Basema Al-Sharif
AU  - Adel Bino
Y1  - 2019/05/23
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190802.15
DO  - 10.11648/j.ijber.20190802.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 69
EP  - 77
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190802.15
AB  - This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.
VL  - 8
IS  - 2
ER  -

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Author Information

Basema Al-Sharif

Department of Finance, School of Business, University of Jordan, Amman, Jordan
Adel Bino

Department of Economy, School of Business, University of Jordan, Amman, Jordan

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APA Style

Basema Al-Sharif, Adel Bino. (2019). The Role of Government Capital Expenditures in Economic Growth in Jordan. International Journal of Business and Economics Research, 8(2), 69-77. https://doi.org/10.11648/j.ijber.20190802.15

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ACS Style

Basema Al-Sharif; Adel Bino. The Role of Government Capital Expenditures in Economic Growth in Jordan. Int. J. Bus. Econ. Res. 2019, 8(2), 69-77. doi: 10.11648/j.ijber.20190802.15

Copy | Download

AMA Style

Basema Al-Sharif, Adel Bino. The Role of Government Capital Expenditures in Economic Growth in Jordan. Int J Bus Econ Res. 2019;8(2):69-77. doi: 10.11648/j.ijber.20190802.15

Copy | Download

@article{10.11648/j.ijber.20190802.15,
  author = {Basema Al-Sharif and Adel Bino},
  title = {The Role of Government Capital Expenditures in Economic Growth in Jordan},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {2},
  pages = {69-77},
  doi = {10.11648/j.ijber.20190802.15},
  url = {https://doi.org/10.11648/j.ijber.20190802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190802.15},
  abstract = {This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Role of Government Capital Expenditures in Economic Growth in Jordan
AU  - Basema Al-Sharif
AU  - Adel Bino
Y1  - 2019/05/23
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190802.15
DO  - 10.11648/j.ijber.20190802.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 69
EP  - 77
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190802.15
AB  - This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.
VL  - 8
IS  - 2
ER  -

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