Analyzing The Impact of Public Debt and Capital Expenditure ‎on Gross Domestic Product (GDP): A Case Study of The Jordanian Economy (2008-2024)‎

  • Authors

    • Assoc. Prof. Dr. Mahdi Khaleel Shadeed University of Babylon / College of Administration and Economics
    • Asst. Lect. Kareem Obayes Hassan University of Babylon / College of Administration and Economics
    • Assoc. Prof Dr. Abduljasim Abbas Alaallah University of Babylon / College of Administration and Economics
    • Mr. Abbas Khalid Mahan University of Babylon / College of Administration and Economics
    https://doi.org/10.14419/0jhf2t29

    Received date: July 31, 2025

    Accepted date: September 4, 2025

    Published date: September 15, 2025

  • Public Debt; Capital Expenditure; Gross Domestic Product (GDP).

  • Abstract

    This study investigates how domestic and external public debt, together with capital expenditure, have shaped the trajectory of Jordan’s ‎gross domestic product (GDP) from 2008 to 2024. Considering Jordan’s ongoing exposure to external shocks and deep-seated structural ‎vulnerabilities, the analysis highlights the pivotal role of fiscal policy in steering macroeconomic outcomes and fostering long-term stability, ‎particularly during periods of pronounced economic volatility.‎

    As a relatively small and structurally open economy, Jordan remains highly dependent on imported energy, making it especially susceptible ‎to both domestic and external shocks. Elevated public debt—measured both in absolute terms and as a share of GDP—further amplifies the ‎country’s vulnerability to regional geopolitical and economic instability. Nevertheless, the government has pursued a series of policy ‎reforms designed to improve the effectiveness of public debt management and capital expenditure in supporting sustainable growth.‎

    In addition, public debt management and capital expenditure effectiveness are closely linked to government accounting practices and fiscal ‎transparency. Proper classification and monitoring of debt instruments can reduce fiscal risks and support long-term macroeconomic stability.‎

    The econometric analysis, conducted using EViews (2009), provides evidence of cointegration among the variables. This indicates that, over ‎time, short-term fluctuations in public debt and capital investment can contribute to correcting long-term imbalances in real GDP.

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  • How to Cite

    Shadeed , A. P. D. M. K. ., Hassan, A. L. K. O. ., Alaallah, A. P. D. A. A. ., & Mahan, M. A. K. . (2025). Analyzing The Impact of Public Debt and Capital Expenditure ‎on Gross Domestic Product (GDP): A Case Study of The Jordanian Economy (2008-2024)‎. International Journal of Accounting and Economics Studies, 12(5), 637-642. https://doi.org/10.14419/0jhf2t29