Current Issue:
February,
2019
Vol.
8(1)
Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) November 2015 Vol. 4(10), pp 398-406
Copyright © 2015 Global Advanced Research Journals
Original Research Articles
The Impact of the Global Financial Crisis on the Jordanian GDP
1Dr. Hazem Bader Alkhatib, 2Dr. Abdel-Aziz Sharabati, 3Dr. Alaa alhorani, 4Dr. Mohammad Tabieh, 5Dr. Tala Qtaisht , 6Dr. Ziad Obeidat,
1Faculty of Business, Middle East University- Jordan ,
2Faculty of Business ,Middle East University –Jordan,
3Finance and Banking Department, Amman University- Jordan,
4Faculty of Agriculture, Jordan University- Jordan
5Faculty of Agriculture, Jordan University- Jordan,
6Faculty of Business & Finance , Islamic economy and banking department The World Islamic Science & Education University -Jordan
Accepted 04 November 2015
Abstract
The purpose of this study is to investigate the influence of the global financial crisis as represented by the Dow Jones on the Jordanian economy which is represented by real GDP, GDP per capita, and the GDP growth rate. The data used in the analysis cover 8 years from 2004 to 2011; for drawing curves, the data cover 16 years from 1999 to 2014. A Bivariate Pearson correlation analysis shows that there is a significant correlation between GDP per capita and the Dow Jones, at α≤0.05, while there is no significant relationship between both real GDP and the GDP growth rate and the Dow Jones. However, it shows that there is a strong correlation between real GDP and GDP per capita while there is no relationship between real GDP and the GDP growth rate. The multiple regression result shows that there is no significant relationship between all selected Jordanian GDP variables and the New York Stock Exchange (NYSE) at α≤0.05. The result also shows that the global financial crisis cannot explain variations for Jordanian GDP at α≤0.0.05. The global financial crisis’ effect on the Jordanian and Chinese real GDP, GDP growth rate, and GDP per capita were not as strong as other countries, such as the US, UK, Euro Area, Saudi Arabia, and the United Arab Emirates.
Keywords: Global Financial Crisis, Real GDP, GDP per Capita, and GDP Growth Rate.