In this study, we provide estimates of An Almost Ideal Demand System (AIDS), as reflected in the demand analysis for Jordan: the free, the homogeneous, the symmetric, and the restricted AIDS models were estimated. The evaluated total expenditure elasticities indicate that the demand for food and housing is inelastic concerning total expenditure (income), whereas the demand for all the other commodity groups is elastic. The uncompensated own-price elasticities indicate that demand for food and clothing items is inelastic and inelastic for all other commodity groups. One striking result was that the own-price elasticity for food seems to be relatively very large compared to the estimated for other countries. Based on the log-likelihood ratios, homogeneity and symmetry given homogeneity for the whole system were rejected. These findings suggest that the demand for aggregate commodity groups in Jordan is not consistent with the theory of demand
This paper aims at testing whether an increase in energy spending has placed a negative or positive impact on the Jordanian economy. Following the economic scale theory and the results of model simulation, we reached to a conclusion that such level of growth in public spending threatens the next generations living in Jordan, as the gap between produced energy and the total energy used. The question is how to shrink this energy gap, or even eliminate it. The paper contributes to bridging such gap by suggesting an increase in the production of domestic energy which depends on what resources Jordan has and whether these resources are renewable or fossil as well as the economic feasibility of using such resources. The influential use is related to social awareness as well as to the supports that are given by government regulations. The paper concludes that it is about time to reduce the amount of support needed by residential energy users in order to invest in other energy projects such as hydroelectric, wind, or large solar farms.
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.
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