Open AccessThe Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)
Author(s) -
Tawfiq Ahmad Mousa,
Abdullah M Shawawreh
Publication year - 2017
Publication title -
accounting and finance research
Language(s) - English
Resource type - Journals
eISSN - 1927-5994
pISSN - 1927-5986
DOI - 10.5430/afr.v6n2p114
Subject(s) - debt , economics , debt to gdp ratio , order (exchange) , debt levels and flows , ordinary least squares , internal debt , external debt , macroeconomics , monetary economics , finance , econometrics
In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth.