Omar Al-kasasbeh
Universiti Sultan Zainal Abidin, Malaysia

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The relationship between unemployment and economic growth: is Okun's Law valid for the Jordan case? Omar Al-kasasbeh
International Journal of Economics Development Research (IJEDR) Vol. 3 No. 3 (2022): International Journal of Economics Development Research (IJEDR)
Publisher : Yayasan Riset dan Pengembangan Intelektual

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37385/ijedr.v3i3.497

Abstract

The purpose of this paper is the validity of Okun’s Law for Jordan’s economy over the period 1990 to 2020. The relation between unemployment and economic growth was tested. It aims to analyze the impact of unemployment on economic growth and to propose recommendations for enhancing economic growth and reducing unemployment in Jordan since the Jordanian economic growth was slow before the Covid-19 outbreaks. The research employed ARDL Bound Cointegration method having validated it’s appropriateness withDickey-Fuller and Philips-Perron tests. The empirical results reveal the existence of Okun’s law in the Jordan economy, with a 1% decrease in Gross Domestic Product which is correlated with a 0.276% increase in the unemployment rate. Based on these empirical outcomes, several policy recommendations are formulated to increase the attraction of foreign direct investment (FDI)which is needed to minimize the country's high unemployment rate. Jordan's policymakers are urged to embrace both labor and growth-inducing measures.
The Impact Of Fiscal Policy On Economic Growth Omar Al-Kasasbeh
HISTORICAL: Journal of History and Social Sciences Vol. 2 No. 1 (2023)
Publisher : Perkumpulan Dosen Fakultas Agama Islam Indramayu

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (829.138 KB) | DOI: 10.58355/historical.v2i1.38

Abstract

The relationship between fiscal policy and economic growth has attracted a great deal of attention in recent years. The growth experience of several countries during the last decades has generated a growing strand of theoretical and empirical literature trying to explain these events. Although one could argue that economic growth and fiscal policy influence each other. The aim of this paper is to review the research work conducted on fiscal policies and economic growth, noting that there are three tools of fiscal policy; the first type is government expenditure, the second type is taxation, and the third type is debts. In addition, according to previous research, the relationship between fiscal policy and economic growth is not clear and consistent, where in some cases a positive relationship, while in others it may be a negative relationship. In this paper, we will discuss the concept of fiscal policies, economic growth, and the relationship between those two variables through some of the previous research.