The Impact of Political Stability on Foreign Reserves

Fatten  Mofady; Ahmad  Malawi

doi:10.35516/hum.v49i6:.4009

Authors

Fatten Mofady Yarmouk University, Jordan
Ahmad Malawi Yarmouk University, Jordan

DOI:

https://doi.org/10.35516/hum.v49i6:.4009

Keywords:

Political stability, foreign reserves, Jordan

Abstract

This study aims to investigate the impact of political stability on foreign reserves in Jordan during the period of 1996 to 2017. To achieve the aim of the study, the researchers used two research methods; descriptive and econometric. The Autoregressive Distribution Lag (ARDL) has been applied. The results show that political stability has a positive impact on foreign reserves in Jordan in the long-run, where if political stability increases by (1) unit, the foreign reserves increase by 1.148 as a percentage. However, in the short-run, there is a positive impact of political stability on foreign reserves, where if foreign indirect investment increases by 1 unit, the foreign reserves increase by 0.498 as a percentage.

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