Determinants of External Debt in Jordan: An Empirical Study (1990–2014)

Abstract

This study aimed at investigating the major determinants influencing the external debt in Jordan during the period (1990-2014). To achieve this goal, annual data has been used during the period study, through applying ARDL model which consist of the dependent (external debt) and independent variables (trade openness, term of trade, exchange rate, and gross domestic product per capita). The study reviled that there is a positive statistically significant effect trade variable on the external debt in the long run, and a negative statistically significant effect for the gross domestic product per capita variable (GDPpc) on the external debt. The study recommended that it is very important to depend on the available recourses in trading rather that depend on external debt.