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Government Spending as a Tool for Economic Growth in the Economy of Jordan

Khaled Abdalla Moh’d AL-Tamimi

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Abstract

This paper shows the impact of government spending on Jordan's economy for the period (2010 –2019), where government spending and tax revenues as percentages of GDP are explanatory variables andeconomic growth is the affected variable. This research concentrates on analyzing theoretical and empiricalliterature reviews of to show the effects of government spending on economic growth and explaining this effectin Jordan for this period using the Autoregressive distributed lag (ARDL) method in Eviews program. Thisresearch reports insignificant effects of government spending and tax revenues as percentages of GDP onJordan's economy for the period (2010 – 2019). The research concludes with a recommendation that othervariables affect the economy apart from government spending and tax revenues as percentages of GDP.

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What this paper is about

This paper shows the impact of government spending on Jordan's economy for the period (2010 –2019), where government spending and tax revenues as percentages of GDP are explanatory variables andeconomic growth is the affected variable. This research concentrates on analyzing theoretical and empiricalliterature reviews of to show the effects of government spending on economic growth and explaining this effectin Jordan for this period using the Autoregressive distributed lag (ARDL) method in Eviews program. Thisresearch reports insignificant effects of government spending and tax revenues as percentages of GDP onJordan's economy for the period (2010 – 2019). The research concludes with a recommendation that othervariables affect the economy apart from government spending and tax revenues as percentages of GDP.

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Available abstract

This paper shows the impact of government spending on Jordan's economy for the period (2010 –2019), where government spending and tax revenues as percentages of GDP are explanatory variables andeconomic growth is the affected variable. This research concentrates on analyzing theoretical and empiricalliterature reviews of to show the effects of government spending on economic growth and explaining this effectin Jordan for this period using the Autoregressive distributed lag (ARDL) method in Eviews program. Thisresearch reports insignificant effects of government spending and tax revenues as percentages of GDP onJordan's economy for the period (2010 – 2019). The research concludes with a recommendation that othervariables affect the economy apart from government spending and tax revenues as percentages of GDP.

Key concepts: Government revenue, Distributed lag, Government spending, Economics, Tax revenue, Revenue, Government (linguistics), Government expenditure

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