Exports- and Imports-Led Growth: Evidence from a Time Series Analysis, Case of Jordan

The purpose of this study is to examine equilibrium relationships and dynamic causality between economic growth (measured as GDP), exports, imports in Jordan using time-series data 1976 2021. In particular, research attempts determine exports-led growth, imports-led growth-led both the short-run long-run. four datasets, GDP, merchandise imports, gross capital formation, were examined Dickey–Fuller unit root tests, Phillips–Perron test, Johansen’s trace tests for cointegration. properties VAR(1) summarized Granger impulse response functions. test results showed that functions indicated there might be some among our datasets. Johansen cointegration suggested series not cointegrated, hence no long-term time series. It appeared short-run, GDP formation Grangerly caused exports. A shock very small fluctuating responses from approached zero