Abstract
<p class="FreeForm">The purpose of this study is to measure the impact of government expenditures on economic growth in Jordan during the period between 1980-2013. To achieve the goal of this study, the multiple linear regression model, linking the study variables was used. Then, the model was analyzed using the OLS model. The results indicate that there is a positive impact for both total government expenditure and current government expenditure on economic growth. This result supports the Keynesian model. Based on the findings of the empirical analysis, the study recommends that capital government expenditure should be directed mainly to current productive economic activities in order to stimulate activities in the economic sectors.</p>
Highlights
Fiscal policy plays an important role in governmental efforts to enhance growth and development in an economy, through the variation of its revenue and expenditure profiles
The main objective of this study was to examine the impact of government expenditure on economic growth in Jordan during the period between 1980 to 2013
1) There is a positive impact for both total government expenditure and current government expenditure on economic growth, which supports the Keynesian model
Summary
Fiscal policy plays an important role in governmental efforts to enhance growth and development in an economy, through the variation of its revenue and expenditure profiles. Patricia and Izuchukwu (2013) illustrate that aggregate demand toward economic recession may be increased by the rise of government spending. This, in addition to directing government expenditure toward non-vital economic sectors (which did not generate revenue to support the government budget), lead to deficit in the state budget. This may be a cause for economic recession. This study looks at the impact of government expenditures on economic growth in Jordan during the period between 1980-2013
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