Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Relationship between Unemployment and the Rate of Economic Growth in Jordan A Case Study of Jordan during the Period 2003-2018

Author(s): Salah Turki Alrawashdeh, Zaynab Hassan Alnabulsi

The study's goal was to look into the relationship between unemployment rates and economic growth rates in Jordan from 2003 to 2018. To answer the central problems of the current study, time series stability, co-integration, and Granger causality tests were used. The results supported the integrative relationship between the study's variables and the Granger's causality test by achieving a one-way relationship between unemployment rates and economic growth rates in Jordan. There was also an inverse relationship between the variables of the study that had an impact on unemployment levels in Jordan, while unemployment does not affect the economic growth in the country. The study recommended finding mechanisms to help the private sector increase its level of interaction with the economy's structure and seek to attract foreign and Arab investments to create job opportunities and distribute them fairly.

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