The Relative Effectiveness of Monetary and Fiscal Policies:Evidence from Jordan

IF 0.1 0 RELIGION

global journal al thaqafah Pub Date : 2021-12-31 DOI:10.7187/gjat122021-12

Elham Mohammad Alhaj Yousef, Eman Abdel Khalik Fseifes

{"title":"The Relative Effectiveness of Monetary and Fiscal Policies:Evidence from Jordan","authors":"Elham Mohammad Alhaj Yousef, Eman Abdel Khalik Fseifes","doi":"10.7187/gjat122021-12","DOIUrl":null,"url":null,"abstract":"The study aims at investigating the relative effectiveness of monetary and fiscal policies on economic growth of Jordan during the period 1977- 2019 using Autoregressive Distributed Lag (ARDL) methodology. The variables of the study were integrated of different orders as indicated by Augmented Dickey-Fuller (ADF) unit root test. Bounds cointegration test revealed that there is a cointegrated long-run relationship between the study variables. The study results showed that there is a statistically significant positive long-run relationship between real GDP and each of broad money supply and total government expenditures. Moreover, the long-run coefficient of money supply was much greater than that of government expenditures, implying that the effectiveness of monetary policy is higher than that of fiscal policy in affecting the economic performance, and both policies can be implemented to stimulate the economic growth in Jordan. Therefore, the study recommends the Jordanian government to improve the management of fiscal policy by controlling its current expenditures, increasing the productive investments, as well as applying a comprehensive tax reform in order to strengthen the role of fiscal policy in boosting the economic growth.","PeriodicalId":12715,"journal":{"name":"global journal al thaqafah","volume":" ","pages":""},"PeriodicalIF":0.1000,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"global journal al thaqafah","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.7187/gjat122021-12","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"0","JCRName":"RELIGION","Score":null,"Total":0}

引用次数: 0

Abstract

The study aims at investigating the relative effectiveness of monetary and fiscal policies on economic growth of Jordan during the period 1977- 2019 using Autoregressive Distributed Lag (ARDL) methodology. The variables of the study were integrated of different orders as indicated by Augmented Dickey-Fuller (ADF) unit root test. Bounds cointegration test revealed that there is a cointegrated long-run relationship between the study variables. The study results showed that there is a statistically significant positive long-run relationship between real GDP and each of broad money supply and total government expenditures. Moreover, the long-run coefficient of money supply was much greater than that of government expenditures, implying that the effectiveness of monetary policy is higher than that of fiscal policy in affecting the economic performance, and both policies can be implemented to stimulate the economic growth in Jordan. Therefore, the study recommends the Jordanian government to improve the management of fiscal policy by controlling its current expenditures, increasing the productive investments, as well as applying a comprehensive tax reform in order to strengthen the role of fiscal policy in boosting the economic growth.

查看原文本刊更多论文

货币和财政政策的相对有效性：来自约旦的证据

本研究旨在使用自回归分布滞后(ARDL)方法调查1977- 2019年期间约旦货币和财政政策对经济增长的相对有效性。采用ADF (Augmented Dickey-Fuller)单位根检验对研究变量进行不同阶数的整合。边界协整检验表明，研究变量之间存在协整的长期关系。研究结果表明，实际GDP与广义货币供应量和政府总支出均存在显著的正相关关系。此外，货币供给的长期系数远大于政府支出的长期系数，这意味着货币政策对经济绩效的影响效果要高于财政政策，约旦可以通过实施这两种政策来刺激经济增长。因此，本研究建议约旦政府通过控制经常性支出、增加生产性投资以及实施全面的税收改革来改善财政政策的管理，以加强财政政策在促进经济增长中的作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

global journal al thaqafah RELIGION-

CiteScore

0.20

自引率

0.00%

发文量

期刊介绍： Global Journal Al-Thaqafah (GJAT) is a biannual journal, published by Universiti Sultan Azlan Shah (USAS), Perak, MALAYSIA. This journal is purely academic and peer reviewed. It caters to articles, research notes and reports, and book reviews on diverse topics relating to Islam and the Muslims. This journal is intended to provide an avenue for researchers and academics from all persuasions and traditions to share and discuss differing views, new ideas, theories, research outcomes, and socio-cultural and socio-political issues that impact on and directly or indirectly affect the Muslim World with the sole purpose of making this world a better place to live in. GJAT started in 2011 and was later granted the SCOPUS status in March 2014. Since then, GJAT has published numerous articles and materials from international contributors. GJAT welcomes contributions from all: academics, experts, and professionals. All articles submitted must be original, academic, of high scholarly standard, and meet the strict SCOPUS requirements. GJAT prioritizes articles that discuss fundamental issues and are of global relevance and importance, and publishes all articles that fulfill the basic criteria without prejudice (kindly refer to "Submission and Guidelines"). All decisions by GJAT to publish any article are final.