The Effect of Monetary Development on Economic Growth of Jordan

Talib Awad, Malik Mahadin

Abstract


The goal of this study was to investigate the relationship between monetary development and economic growth in Jordan. Granger-causality test was used to provide empirical evidence of the causal relationship between monetary development and economic growth. In addition, the dynamic modeling approach with appropriate lags was used to measure both the long run and short run effects of monetary variables on economic growth. The main findings of this study agreed with the economic theory that stating; the Granger-causality test indicates the existence of a causal relationship which runs from monetary development variables to Real Gross Domestic Product (RGDP). The dynamic model results indicate that there is a positive effect of monetary variable on (RGDP)

Keywords


Causality Test, Monetary Development

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