The Impact of Fiscal Policy Tools on Unemployment Rates in Jordan: Autoregressive Distributed Lag Approach

Objectives: The main objective of this study is to investigate the impact fiscal policy tools on unemployment rates in Jordan during period 1986-2019.
 Methods: estimated two models; first consists tax revenues and aggregate government expenditure as independent variables, second addition capital current expenditures explanatory variables.
 Results: variables are integrated at different levels cointegrated both models indicated by Augmented Dickey-Fuller Unit Root Test Bounds Cointegration test. Therefore, used Autoregressive Distributed Lag approach for estimation. results model clarified that increase causes decline short long run. On other hand, showed increases Moreover, spending has significant negative long-run effects rates, while only a short-run impact.
 Conclusions: Based these outcomes, introduced some recommendations with regard increasing effectiveness instruments reducing Jordan.