Authors : Husni A. Khrawish, Wasfi A. Al Salamat and Abla Al Tahtamoni
Abstract: This study aims to examine the determinants of internal debt in Jordan over the period from (1991-2015). This subject was selected because the internal debt increased over the last 10 years about 145% while the external debt decreased about 75% as well as it considered the first one to be conducted in the context of Jordan. To achieve the aim of this study it followed a functional model which already employed earlier by Budina and Fiess, Ribeiro and Sinha. The time series Ordinary Least Squares (OLS) is used for the determinants testing purposes. The analysis revealed that there are a statistically significant negative relationship between Internal debt (INT) and the following variables: Budget Deficit (BDF), Current Expenditure (CEP) and Capital Expenditure (CAP) . The study will be useful for the fiscal and monetary policy for rationalization of fiscal and monetary policies in order to reduce internal debt as well as it will be useful for monetary and financial authorities.
Husni A. Khrawish, Wasfi A. Al Salamat and Abla Al Tahtamoni, 2017. Determinants of Internal Debt: Evidence from Jordan. International Business Management, 11: 2034-2040.