The Impact of the Twin Deficit on the Foreign Debt in Jordan from 1995-2011

Dissertant

al-Salim, Maysun Isa Ahmad

Thesis advisor

al-Zeaud, Husayn Ali

University

Al albayt University

University Country

Jordan

Degree

Master

English Abstract

The main objective of this study is to analyze the impact of twin deficits on the foreign public debt in Jordan during the period 1995-2011, using Vector Autoregressive Model (VAR), using five variables, foreign debt (FD), budget deficit (BD), current account deficit (CAD), saving gap (SG) and foreign aid (FA).

Results showed that the strongest positive relationship is between twin deficit (BD, CAD) and foreign debt (FD).

Engle-Granger and Johansson test showed the existence of two Vector Co-integration, suggesting long-run relationship between variables.

In addition, causality test showed one causal relationship from CAD to FD, there is one causal relationship between the two variables from FD to BD, and existence of one causal relationship between the two variables FA,FD .The absence of any causal relationship between the two variables SG ,FD.

Variance decomposition test showed the current account deficit CAD ranked first in term of the impact on (FD) followed by BD which showed the impact of twin deficit on the foreign debt.

Main Subjects

Economics & Business Administration

Topics

• External debt
• Jordan
• Accounts current

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-420276