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International Journal of Business and Society
Article . 2022 . Peer-reviewed
License: CC BY NC SA
Data sources: Crossref
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The Fiscal Multiplier and Its Determinants: An Econometric Analysis for the Case of Jordan during the Period (1975-2017)

Authors: null Mohammad A. Al-Masaeid; null Ahmad A. Alwaked;

The Fiscal Multiplier and Its Determinants: An Econometric Analysis for the Case of Jordan during the Period (1975-2017)

Abstract

This study aimed to analyze the impacts of government expenditure and the public revenues on economic growth via the estimation of the fiscal multipliers for the period of (1975-2017). Also, the study analyzed the value and effects of the determinants of this multiplier, namely the openness of trade, public debt, the exchange rate, and the size of automatic stabilizers. In order to achieve these purposes, the study used the descriptive approach and the Auto-Regressive Distribution Lag (ARDL) approach. the tests showed that the variables became stationary after taking the first difference, and the variables are co-integration. The results of the study showed that the value of the fiscal multiplier of the government expenditure in the short and long term is about (1.34 and 3.60) respectively, and if we added its determinants, the value of the multiplier is estimated (2.80 and 2.97) respectively. The fiscal multiplier for the public revenues was estimated (1.17 and 4.10) respectively in the short and long term, but in the case of adding its determinants, the multiplier value is estimated (0.80 and 3.97) respectively. Based on the findings, the study recommended the government to increase its capital expenditures, although at the expense of carrying additional debt at present, to provide higher economic growth and encourage and attract an environment for investments.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
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Average
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