Economy Of Jordan Research Articles

A Smart Vertical Farming Hub at Isra University, Jordan: Toward the Development of Resilient Cities

The UN projects that 80% of the world’s population will be living in urban areas by the year 2050. The big rise in urbanization is anticipated to happen in Asia and Africa, and Jordan is no exemption. Dietary shifts and changes in food, energy and water nexus demands are all associated with rapid urbanization and population growth.These ramifications could even exacerbate the stress already existing on natural resources. Concerns about food security had been highlighted in 2020 and most recently in 2022 in the Jeddah Security and Development Summit, by His Majesty King Abdullah II, as the country suffered from food insecurity resulted from the COVID-19 pandemic.The pandemic had brought extra burden to an already battered economy in Jordan. It also has forced ~55% of households in Jordan to resort to the crisis by food-related survival strategies such as reducing number of meals to make ends meet. Different researchers have called to a transformation in the way the cities are planned and governed to value them in the “post-pandemic era”, to enhance futureproof models that are in harmony with local conditions and planetary boundaries, such as a “regenerative city” model aiming for greater resilience and to achieve SDGs the country pledged to. This paper highlights such facts and associated challenges through examining different literaturesto find that research on vertical farming is currently noticeable. It is believed that such method wouldestablish better understanding scholarly base of vertical farming’s theory and practice. Accordingly, the examined literatures proofed to legitimate the urgent need for the “Smart Vertical Farming Hub” at Isra University (Jordan). It successfully produced different types of greenery leaves, green pepper, and strawberry. To the best of the authors’ knowledge, the nature of this project in Jordan is considered as a unique initiative aiming towardsdeveloping resilient Jordanian cities.

Short-and Long-run Influence of COVID-19 on Jordan's Economy

Abstract Global economic growth projections have been revised downward in the wake of the COVID-19 pandemic. This adjustment mirrors a substantial global economic decline brought about by COVID-19-induced lockdowns, which greatly restricted labor force movement and disrupted international trade, with Jordan aligning itself with this downward trend. This report provides a comprehensive sector-specific assessment of the COVID-19 impacts on the Jordanian economy, drawing on Jordanian official reports, various news sources, and expert opinions. Jordan's battle with COVID-19 extends beyond public health, encompassing significant economic challenges, with the ongoing economic struggle potentially proving more formidable than the health crisis. Therefore, Jordan's primary focus should be on establishing a precisely targeted social safety net, given the pandemic's highlighting of widespread informality in employment across the Middle East and North Africa region, as it navigates its path to economic recovery. JEL classification numbers: I, I15. Keywords: COVID-19, Economic influence, Jordan, Microeconomics, Macroeconomics

The Effect of Macroeconomic Policy Uncertainty on Environmental Quality in Jordan: Evidence from The Novel Dynamic Simulations Approach

Objectives: Over the past few years, Jordan's economy has grown rapidly, placing it prominently among the world's emerging markets and developing economies rapidly. The country is known for its diverse natural resources. However, the effects of macroeconomic uncertainty, energy intensity, and trade openness on the environment have received less attention than the environmental implications of energy generation. This research fills a significant gap in the literature by investigating the impact of macroeconomic policy uncertainty on Jordan's environmental Kuznets curve from 1970 to 2021.
 Methods: This study adopted a methodological framework to simulate dynamic distributed self-regression.
 Results: The results of the study revealed that uncertainty about the future direction of macroeconomic policy accelerates the short and long-term rate of environmental degradation; economic growth accelerates environmental degradation while the square of economic growth slows it, confirming the presence of the environmental Kuznets curve hypothesis; energy density accelerates the rate of environmental quality degradation.
 Conclusions: Jordan should adopt advanced, environmentally friendly, clean technologies that transition from fossil fuels to low-carbon renewable energy sources. The government should establish strong international partnerships for technology exchange and environmental preservation. Additionally, increasing Jordan's economic complexity is crucial for achieving its environmental development goals.

The Impact of Taxes on Prices and Production in Jordan

Purpose: This study aims to demonstrate the impact of taxes on prices and production in Jordan. Theoretical framework: Study problem lies in asking the following questions Does the tax system in Jordan serve the economic aspects? Does the tax in Jordan affect the economic aspect? Is the tax in Jordan fair? Is there an impact of the tax on prices in Jordan? Is there an impact of the tax on production in Jordan? What is the effect of taxes on consumer speeding on necessary versus luxury goods? What is the impact of higher taxes on personal income of consumers? The effect of Lower taxes on the economy and disposable income? What is the alternative for governments to increase their income other than direct higher tax system? What is the effect of various government entities; such as financial, administrative, and social corruption on Jordan economy? Design/methodology/approach: Researchers used standard analysis method and vector error correction model for the period (2011-2020), and used the profit margin ratio indicator as a representative indicator for production and prices. Findings: Results showed a long-term causal relationship between prices and production; from one side and direct and indirect taxes; from the other side and that relationship between short-term deviations and long-term reliability is corrected at a rate of (3%) per year. Results showed a negative significant impact of indirect taxes on price competitiveness; in the long term which was reinforced by the variance components’ analysis and response function’s test. Results also showed an insignificant impact of direct and indirect taxes on price competitiveness; in the short term. Research, Practical & Social implications: Demonstrating the impact of taxes on prices and production in Jordan. As well as, discussing the governmental tax and income. Originality/value: The importance of study stems from research topic, since taxes have multiple effects on various areas in society which can be divided into scientific and practical importance.

The impact of dynamic capabilities on circular economy: the mediating effect of the industrial Internet of things

PurposeThe current study aimed to identify the impact of the dynamic capabilities on the circular economy in Jordan's small- and medium-sized manufacturing enterprises sector as and the mediating role of industrial Internet of things.Design/methodology/approachThis study surveyed small and medium manufacturing enterprises operating in Jordan and collected 459 responses through an online self-administered questionnaire. The effects of dynamic capabilities and the industrial Internet of things on the circular economy were analyzed using covariance-based structural equation modeling (CB-SEM).FindingsEmpirical results showed that all hypotheses are accepted. The results also revealed that the relationship between dynamic capabilities (sensing, seizing and reconfiguring) on a circular economy is mediated by the industrial Internet of things.Originality/valueThis work expanded the application of the dynamic capabilities view to investigate the antecedent effects of the industrial Internet of things and the circular economy and deepened understanding of the dynamic capabilities view theory in assessing the dynamic activities of these firms based on the three dimensions of sensing, seizing and reconfiguring. In general, this study made a theoretical and managerial contribution to supply chain and circular economy literature.

Predicting WEEE Generation Rates in Jordan Using Population Balance Model

Waste generated from electric and electronic equipment (WEEE) is increasing rapidly due to the high demand for appliances, rapid product obsolescence, coupled with rapid economic growth, urbanization and technology advancement. Setting up a proper WEEE management system, which ensures better collection, treatment, recycling and control of transboundary movement of waste is crucial to increasing resource efficiency, improving sustainable production, use and consumption, and promoting the circular economy in Jordan. However, this system requires proper assessment of WEEE generation rates and reliable figures. Estimation of historical and future electric and electronic equipment put on market (EEE POM) and WEEE generation rates in Jordan have been achieved using the population balance model (PBM), logistic growth model (LGM) and Weibull distribution from 2000 to 2050. It is expected that the total disposal of appliances will reach about 1.6 million units (53 kt) in 2022, double this figure by 2044 and hit around 5 million units (175 kt) in 2050, with increasing WEEE generation rates. This is combined with the changing composition of WEEE with time. Thus, a rapid increase of WEEE in the near future is expected; this increase requires close monitoring and immediate response to tackle this hazardous waste.

The relationship between unemployment and economic growth: is Okun's Law valid for the Jordan case?

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.

Empirical Analysis of Air Pollution Impacts on Jordan Economy

Pollution and the economy appear to be intertwined throughout human history. Our knowledge of the connection between environmental damage and economic growth is fragmented due to disciplinary biases. Accordingly, the purpose of this research is to gain an understanding of the dynamic relationship that exists between air pollution and the economy of Jordan, as well as to investigate the existence of the Environmental Kuznets Curve (EKC), in order to determine which policy options would be most effective in reducing emissions while still allowing for continued economic growth. This study adopted the Bayer-Hanck Cointegration test and Granger Causality tests to achieve the objectives. Bayer-Hanck cointegration indicate that there exists a long-term relationship between air pollutants and economic growth. Moreover, Granger causality test shows that economic growth has a causal effect on the three air pollutants at a significance level of 0.05. By scholarly contributions to the debate between air pollutants and economic growth, this study aims to fill a gap in the existing literature by investigating the EKC hypothesis and the impacts of air pollution on economic growth in Jordan.

The Formalisation of Women's Cooperatives and the Reduct ion of the Informal Economy in Jordan, Fact or Fict ion?

This study examines the possible influence of formalising women's cooperatives on Jordan's informal economy. At the same time, to produce empirical evidence from a theoretical perspective, we study how the crucial challenges of the informal economy affect formalisation. This is an empirical study, both descriptive and inferential, in which several databases are used to extract the relevant data from the sample of 66 Jordanian women's cooperatives in the period from 2011 to 2020. A dynamic panel data model is used for the study variables with controlling for specific fixed effects. The findings indicate that the formalisation policy in the cooperative sector does not affect the informal economy. Instead, the challenges significantly affect the informal economy.

The Mock Application of the Insolvency Law by the Jordanian Courts: Lessons Learnt from Indonesia

Jordan is currently going through difficult economic conditions whose features have begun to crystallize clearly since the outbreak of crises and wars in Syria and Iraq. In addition to that, the year 2020 brought with it the unknown to further complicate the Jordanian economic situation. In order to find a comprehensive solution, the Jordanian legislator used some international references, such as the principles of effective systems of creditors’ rights and insolvency issued by the World Bank and the Legislative Guide to the Insolvency Law issued by the United Nations Commission on International Trade Law (UNCITRAL) to rescue faltering economic projects or those that are about to stumble. The study resulted in the issuance of the Jordanian Insolvency Law No. 21 of 2018. This paper aims to identify the insolvency standard of the Jordanian courts and its impact on Jordan's economy. By applying a qualitative legal approach, this paper analyses the mock application of the Insolvency Law by the Jordanian courts. It also examines the insolvency standard followed by the Jordanian courts via juridical-normative with descriptive analysis. The finding shows that applying the insolvency law in Jordan is still a theory. Jordanian courts should cautiously extend the scope of insolvency theory for the law to achieve the purpose for which it was issued. Comparing the practice in Indonesia, which has switched from the insolvency test concept to the presumption of bankruptcy, this is a lesson because, in the conditions of the COVID-19 pandemic, companies will find it challenging to request reports due to uncertain situations. According to the financial aspect, large companies are still good, but companies are reluctant to pay debts. This condition means that if the system used is a bankruptcy test, this case cannot be brought to the Commercial Court, so the court cannot force debtors who are reluctant to pay their debt obligations.

The hidden economy in Jordan: A MIMIC approach

This paper uses the Multiple Indicators Multiple Causes (MIMIC) approach to determine the annual size and growth of the hidden economy in Jordan for the period 1980–2018. We find that the key causal variables of the hidden economy in Jordan are: female labor force participation, the inflation rate, the unemployment rate, total tax revenue, and the budget deficit. The growth of these causal variables increases Jordan’s hidden economy. According to our findings, the estimated average of the hidden economy from 1980 to 2018 is 17.6% of the official GDP. Thus, it comprises a large portion of the official GDP. Furthermore, our results suggest an increase in the size of Jordan’s hidden economy from 11.8% in 1980 to 22.4% in 2018. The overall results can assist policymakers in Jordan to combat and reduce the size of the hidden economy.

The Effect of Covid-19 on the Economy of Jordan

The COVID-19 pandemic and its socioeconomic impacts in Jordan are rapidly evolving, with the impact being shaped not only by the effects of the virus's spread on the broader economy, but also by the nature of the government response—movement restrictions and other emergency measures—and Jordan's key development partners' support. It is critical to have a good understanding of who is impacted, how, and for how long in order to adopt suitable mitigation measures or to change existing emergency measures. The study's goal is to provide evidence for policy and programming objectives, as well as to aid in the development of appropriate strategies to mitigate the pandemic's effects in Jordan. The study assesses the impact of COVID-19 on unemployment, public debt and economic growth in Jordan. The study found that the Jordanian economy reported major challenges in terms of decreased growth, increased unemployment, and increased public debt Compared to previous years before the breakout of COVID-19.

The Impact of Economic Growth on Unemployment in Jordan during the period 1980-2022

The Impact of Economic Growth on Unemployment in Jordan during the period 1980-2022

CHALLANGES FACING THE EMERGING ECONOMY DURING COVID-19 THE CASE OF JORDAN

Purpose: The purpose of this study was to explore the challenges of the Jordanian economy during COVID-19. The Jordanian economy may have to face different scenarios in his macro-environment. Specifically, the study focused on the impact COVID-19 on the Jordanian economy.
 Methodology: An exploratory research method was used to build three scenarios. The sample randomly selected from Jordanians in the capital of Jordan Amman. The study divided the sample to three groups and asking them three questions related to the expectations of the impact of COVID-19 on the Jordanian economy for the coming years.
 Results: The study findings revealed that the majority of respondents (55.2%) are optimistic that the COVID-19 will finish and Jordan economy will be booming.
 Unique contribution to theory, practice and policy: Recommendations were provided for Jordanian policy makers to deal scenarios. For example Jordan government and policy makers has to be pragmatic, and work toward lowering level of expectations among Jordanian economy to avoid the negative impact of COVID-19 on the economy. Cooperation between the public sector and private sector in implementing the instructions of the World Health Organization and the Ministry of Health to decrease the number of cases to open more sectors which will have a positive impact on the Jordanian economy.

The nexus between the economic growth and unemployment in Jordan

The main objective of this study is to investigate the impact of unemployment on Jordan's economy over the period 1991–2019. This study used the auto-regressive distributed lag (ARDL) model to investigate the relationship between the unemployment rate and the other variables. Also, we employ the ARDL bootstrap cointegration approach to examine the correlation and long-run relationship among the variables. The empirical finding indicated a long-run relationship between the unemployment rate, economic growth, education, female population, and urban population in Jordan. Our finding shows the negative linkage between economic growth and unemployment, and a positive relationship among the education, female population, and urban population and unemployment in Jordan.

Does Jordan Seem Stable? A Century Since An Establishment

This paper attempts to address the question of Jordan’s stability. The country, considered an ally to the United States, is suffering huge challenges economically, politically, and socially. The economy of Jordan is facing huge drawbacks and is unable to achieve positive change in the lives of the Jordanians. The underlying issue is that the economy is affected by other aspects; this leads to political challenges in the country. In addition, Jordanians have lost trust in their governments due to numerous unfavorable experiences that have taken place over the years. Furthermore, situations in the region are negatively affecting Jordan. This paper argues that the stability in Jordan is fragile, and the only way for the country to be strong and stable is through political reforms.

Coronavirus Effects on the Economy of Jordan

This paper reports the effects of coronavirus on Jordan's economic growth by using quarterly data for the period (2018/2019 Q1 – 2019/2020 Q4), where the numbers of people who are sick with coronavirus and those that have died from the virus are explanatory variables, and economic growth is an affected variable. The research concentrates on analyzing reviews of theoretical and empirical literature to show the effect of coronavirus on economic growth and explaining this effect in Jordan in this period by using the ARDL technique in Eviews. By using quarterly data for (2018/2019 Q1 – 2019/2020 Q4) at a significance level of 5%, this research demonstrates that the numbers of people who are ill with coronavirus and those that have died from the virus have a weak positive effect and a negative but significant effect on the economic growth of Jordan, respectively. The research also shows a recommendation of limiting the negative effects of coronavirus by reducing the number of deaths via strengthening the health service and opening some economic sectors to boost economic growth in the country.

Government Spending as a Tool for Economic Growth in the Economy of Jordan

This paper shows the impact of government spending on Jordan's economy for the period (2010 –2019), where government spending and tax revenues as percentages of GDP are explanatory variables andeconomic growth is the affected variable. This research concentrates on analyzing theoretical and empiricalliterature reviews of to show the effects of government spending on economic growth and explaining this effectin Jordan for this period using the Autoregressive distributed lag (ARDL) method in Eviews program. Thisresearch reports insignificant effects of government spending and tax revenues as percentages of GDP onJordan's economy for the period (2010 – 2019). The research concludes with a recommendation that othervariables affect the economy apart from government spending and tax revenues as percentages of GDP.

The Effect of Budget Deficit on the Economy of Jordan

This paper describes the impact of budget deficit on the Jordanian economy for the period (2010 –2019) where budget deficit and inflation are explanatory variables and economic growth is the affectedvariable. This research concentrates on analyzing theoretical and empirical literature reviews to show theeffects of budget deficit on economic growth and explaining this effect for this period using the Autoregressivedistributed lag (ARDL) method in Eviews program. The results of this research show that budget deficitcalculated as a percentage of GDP and inflation rate have insignificant effects on the Jordanian economy for theperiod (2010 – 2019). This paper concludes with a recommendation that, apart from budget deficit and inflationrate, other variables that affect the economy exist.

Impact of Workers’ Remittances on Poverty Index New Evidence from Jordan

The workers’ remittances is one of the most important sources of external cash inflows for many countries worldwide. This importance creates from its high added value in the economy reached 10% of GDP in Jordan's economy. So, this study aims to resolve the economic impact of the remittances by Jordanian workers on the poverty index during 2000-2018, the comparative effect of such remittances with economic growth, and the inequity in income distribution is manipulated. An econometric model is designed and the natural logarithm of variables in the research model is used. The dependent variable is the poverty index LP, while the independent variables are remittances of migrant workers REM, economic growth EG, and the inequality in income distribution IEQ using the ARDL approach. The study concludes that there are statistically significant effects of the remittances and economic growth on the poverty rate in Jordan in the long term with no significant, but the relationship between income inequality and the poverty index is not proved in the long and short terms. The study develops a set of recommendations contain key economic implications that ensure the better uses of cash inflow and improve their contribution to the national economy.