Financial Liberalization and Its Impact on Economic Growth in Jordan
Year: 2025
Type: article
Abstract: The researcher employs the Autoregressive Distributed Lag (ARDL) model with bounds testing methodology to examine the relationship between economic growth and financial liberalization in Jordan from 1993 to 2022. The findings of the analysis revealed that financial liberalization has a detrimental effect on both short-term and long-term economic growth, albeit this effect seems to be relatively weak. The study suggests that the adoption of financial liberalization policies in Jordan is not conducive to fostering economic growth. Nevertheless, given the vulnerability of financial markets to market failures, it is crucial to persist in implementing interventionist measures in financial reform. The researcher recommended more proposals that help enhance the importance of financial liberalization and the possibility of its impact on economic growth, in addition to proposing additional policies that help increase economic growth rates by increasing the rates of financial flows into the national economy.
Author: Nidal Abbas
Institution: Zarqa University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4407971711