The Impact of Government Expenditures on Unemployment: A Case Study of Jordan
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Keywords

Jordan, Government, Spending, Unemployment, ARDL.

How to Cite

Saraireh, S. . (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling, 8(3), 189–203. https://doi.org/10.18488/journal.8.2020.83.189.203

Abstract

In this paper, we estimate the effects of Government spending on unemployment in Jordan for the period 1990 to 2019. By using the ARDL co-integration test we found a negative and statistically significant long-run relationship between government spending and the unemployment rate in Jordan. An increase in government spending by a per cent of GDP is found to reduce unemployment by about 0.43 percentage points in the same year. We also noticed that, in the short-run, government spending has a positive and significant impact on unemployment.

https://doi.org/10.18488/journal.8.2020.83.189.203
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