Objectives: The study aims to analyze the Jordanian current account determinants during the period of 1995-2018 and demonstrate their importance in affecting the Jordanian current account balance to draw policies and find ways to help reduce the deficit in the current account balance in Jordan. Methods: The analytical-qualitative and the econometric methods were adopted in addition to the Autoregressive Distributed Lag (ARDL) approach to examine the relationship between the current account deficit and the economic factors affecting it. Results: The study revealed that there are long-term effects between the study variables, mainly general budget deficit, private savings, trade exposure rate, effective real exchange rate, international exchange rate, gross investment, GDP growth rate, and current account balance. The results also indicated a negative impact of the general budget deficit, private savings, and trade exposure rate on the current account balance and a positive impact of the effective real exchange rate, gross investment, and GDP growth rate on the current account balance. The study shows that Jordan has a deficit in the current account balance, and this is mainly due to the impact of the negative budget deficit and the deficit of its trade balance. Conclusions: The study recommends implementing some strategies to stabilize the current account deficit, the most important of which are supporting and promoting Jordanian exports, focusing on controlling public expenditure, reducing external debt, and stimulating and diversifying productive sectors.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.