Intensive Economic Growth in Jordan during 1978-2010

Abstract

The research aims to study the economic growth in Jordan using the Solow model during the period 1978-2010, it was found that the rate of economic growth depends on the intensive growth which reflects on intangible aspects that does not reflect changes visible in the accumulation of factors of production rather than the expanded growth through increasing the capital and labor.Keywords: economic growth, human capital, GDP, Solow mode, intensive growth, expanded growth Introduction Explore the ImportanceThe economist Alfred Marshall confirmed that the importance of investing is in human capital as a national investment, noting that the best types of capital value is capital that invests in the human, as the key to the progress of nations and people, it is through the development of human resources, which shift wealth from just amounts to quality and creative energies and technology with a variety of contributions effective in achieving the desired progress. Examples of the impact of investment in human capital in the progress and economic and social growth is multiple, and Human capital is the element that gives people the ability to achieve their incomes which can be increased through education and training, health care and economists see that the accumulation of human capital and physical is important in condition for economic growth.Economic growth depends on a range of variables, and most important is capital increase through investment and capital accumulation, and the increase in workforce that affect the economic growth through the quality of work and productivity and spending on improving and developing the quality of work including the investment in human, where it is investing in manpower and capital in parallel, the accumulation of human capital affect the production process, and extends to improving the quality of production, in addition to reducing the cost of its ability to use modern technological methods and ability to innovation and creativity.The experiences of the availability of skilled labor have showed a minimum of education, consistent with rapid technological changes, achieve economic growth rates in the long term, and focused recent studies on a relationship and link between economic growth and human capital accumulation, and investment which have a positive impact on economic growth and this study comes to the source of economic growth in Jordan, which depends on the investments and the labor force on the one hand and improve the overall productivity of the factors of production that are not reflected in the visual changes in the accumulation of factors of production such as improving the technology used and the level of education and training for individuals.Also there are many other factors like monetary policy, the size of government expenditures, foreign trade, and inflation are considered as a factors affecting economic growth. HypothesisThe first hypothesis:Assume that production depends on the expanded growth through increasing the capital and labor is positive. The second ...

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“…And found that "… the rate of economic growth depends on the intensive growth which reflects on intangible aspects that does not reflect changes visible in the accumulation of factors of production rather than the expanded growth through increasing the capital and labor." (Abdul-Khaliq, Soufan, & Abu Shihab, 2013) This study tries to pinpoint the role of monetary policy in achieving the desired levels of economic growth to come up with appropriate recommendations that might help policymakers assess the performance of monetary policy in Jordan.…”

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