Government spending in Jordan positively linked to GDP and revenues, but hindered by unemployment and population growth.
The article builds a model of government spending in Jordan using ARDL analysis. It looks at how government spending is related to factors like GDP, government revenues, inflation, unemployment, population growth, and public debt. The study found that government spending is positively related to GDP and government revenues, but negatively related to unemployment and population growth. In the long term, government spending is positively related to GDP, but in the short term, it is negatively related to population growth, inflation, and unemployment. The study suggests increasing government spending in line with population growth and generating more income to boost revenue.