أثر السوق المالي و الجهاز المصرفي على النمو الاقتصادي : حالة الأردن (1979-2009)‎

Abstract EN

This study aims to investigate the dynamic impact of stock market and banking system on economic growth in Jordan, for the period (1979-2009).

To achieve this objective, many tests and models have been conducted which include: unit root, co integration, causality and the vector error correction model.

The cointegration test suggests that there is long-run relationship between the variables; first, the domestic credit has negative impact on economic growth.

Second, the money supply, market capitalization and turnover ratio have positive impact on economic growth.

Third, government spending has negative and insignificant impact on economic growth.

The causality test based on vector error correction model supports the supply-leading hypothesis in the long run as well as the short run.

The variance decomposition analysis showed that the banking system has a greater impact than stock market on economic growth.

Finally, the impulse response function revealed that there is a negative impact of domestic credit on economic growth in short run.

While, other variables have a positive effect.

The study recommends directing the domestic credit to a productive investment in the long run, improving the efficiency of Amman Stock Exchange, and encouraging the foreign investment, as well as developing investment culture in Amman Stock Exchange.