Debt and Economic Growth in Developing Countries: Jordan as a Case Study

Abstract

The study examines empirically the relationship between debt and economic growth in Jordan during the period (1990-2013) using Cobb-Douglas production function. The estimated results of the study reveal that the gross fixed capital formation and domestic debt have positive and significant relationship with economic growth in Jordan, but labor, external debt, and long-term external debt have a negative and insignificant impact on economic growth in Jordan.