النمو الاقتصادي المقيد بميزان المدفوعات : حالة الأردن

Abstract EN

The study attempts to test and analyze the external demand constraints on economic growth of Jordan, by analyzing the data of exports, capital flows, relative prices and real gross domestic product of Jordan using The Vector Error Correction Model (VECM) with the help of annual time series data for 1976 to 2016.

The VECM analysis show’s that short-term deviations from the long-term equilibrium are being corrected by 33.37 percent annually.

Moreover, the result reveals the positive effect of exports and capital flows and the negative effect of relative prices on the real GDP on the long run.

Thus, The study emphasizes on the importance of framing policies that promote export and capital inflows, and limiting the constraints on relative prices in order to boost economic growth.