The structure of the Jordanian economy : an econometric investigation
The structure of the Jordanian economy : an econometric investigation
This study is an econometric investigation of the Jordanian economy. Emphasis is given to an analysis of private consumption, private investment, the monetary sector, the foreign trade sector, the government sector, and the formation of prices. In each case, relevant theories are tested against the available data. The major findings of the study are as follows: 1. Various older and contemporary theories of the consumption function were found to represent incomplete explanations of consumer behaviour in Jordan. 2. Finance for investment is not produced by either the financial markets or net capital inflows, but rather is generated by remittances from abroad. There is no relationship between private investment and interest rates on bank credit, and government investment is found to be complementary to private investment. 3. The Central Bank is shown to have failed to control the money stock, which is demand rather than supply determined. There is a weak sterilisation process in operation by the Central Bank. 4. The hypothesis that the monetary approach is relevant to Jordan is not fully confirmed by formal tests of causality and regression analysis. 5. The hypothesis that the demand for money is interest responsive is not supported. 6. The argument that the conmmodity and geographical concentration of foreign trade causes instability in export proceeds is confirmed. This instability is shown to have consequences for the main macroeconomic variables. 7. The import substitution process does exist to some extent, but it is advancing slowly. 8. There has been a further deterioration in the trade balance, due to import elasticities being greater than export elasticities. 9. Inflation in Jordan is explained by a model combining monetarist and structuralist variables. 10. There was evidence of instability in government domestic revenue, mainly in indirect taxation. It was found that taxes are income elastic.
University of Southampton
Ibrahim, Issa J
6efee8f4-9776-407f-9723-3be84667c018
1983
Ibrahim, Issa J
6efee8f4-9776-407f-9723-3be84667c018
Ibrahim, Issa J
(1983)
The structure of the Jordanian economy : an econometric investigation.
University of Southampton, Doctoral Thesis.
Record type:
Thesis
(Doctoral)
Abstract
This study is an econometric investigation of the Jordanian economy. Emphasis is given to an analysis of private consumption, private investment, the monetary sector, the foreign trade sector, the government sector, and the formation of prices. In each case, relevant theories are tested against the available data. The major findings of the study are as follows: 1. Various older and contemporary theories of the consumption function were found to represent incomplete explanations of consumer behaviour in Jordan. 2. Finance for investment is not produced by either the financial markets or net capital inflows, but rather is generated by remittances from abroad. There is no relationship between private investment and interest rates on bank credit, and government investment is found to be complementary to private investment. 3. The Central Bank is shown to have failed to control the money stock, which is demand rather than supply determined. There is a weak sterilisation process in operation by the Central Bank. 4. The hypothesis that the monetary approach is relevant to Jordan is not fully confirmed by formal tests of causality and regression analysis. 5. The hypothesis that the demand for money is interest responsive is not supported. 6. The argument that the conmmodity and geographical concentration of foreign trade causes instability in export proceeds is confirmed. This instability is shown to have consequences for the main macroeconomic variables. 7. The import substitution process does exist to some extent, but it is advancing slowly. 8. There has been a further deterioration in the trade balance, due to import elasticities being greater than export elasticities. 9. Inflation in Jordan is explained by a model combining monetarist and structuralist variables. 10. There was evidence of instability in government domestic revenue, mainly in indirect taxation. It was found that taxes are income elastic.
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Published date: 1983
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Local EPrints ID: 467881
URI: http://eprints.soton.ac.uk/id/eprint/467881
PURE UUID: 128bb5f9-c649-4d0f-82b9-8776ef2e5d0e
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Date deposited: 23 Jul 2022 02:17
Last modified: 23 Jul 2022 02:17
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Author:
Issa J Ibrahim
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