Topics on financial crises in emerging countries case of Jordan

Al-Tarawneh, Alaaeddin (2012). Topics on financial crises in emerging countries case of Jordan. University of Birmingham. Ph.D.

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Abstract

This thesis investigates the effect of monetary policy on financial stability and part of the real side of the Jordanian economy over the time period 1976-2009. It uses a number of empirical methodologies including: a Vector Autoregressive (VAR) to investigate the relationship between monetary policy and financial stability in Jordan; A Logit model and Markov switching model to study the currency crisis in Jordan; and an Autoregressive Distributed Lag (ARDL) to estimate an investment function for the Jordanian economy. Findings of the VAR models confirmed the relationship between monetary policy and financial stability in Jordan. However, a number of indictors were found to have a significant effect on the currency crisis in Jordan. These indictors included the real exchange rate, money supply-reserves ratio, and growth rate of domestic credit. On the other hand, a stable long-run investment function exists. Real income and real credit were found to have a positive impact on real investment. However, the user cost of capital has had a negative impact on real investment.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):