The Impact of International Monetary Fund Arrangements on the Jordanian Economy: 1989-2022: An Empirical Study

Abstract

Objectives: This study explores the statistical and qualitative impact of International Monetary Fund (IMF) arrangements on key structural variables in the Jordanian economy (1989-2022), including economic growth, balance of payments, external debt, unemployment, and Jordan's foreign investment attractiveness. It addresses the central question: What is the impact of the IMF arrangements on these variables of the Jordanian economy, and what are the reasons for the success or failure of these arrangements?

Methods: The study used both the descriptive quantitative statistical method and the case study method, as a test of its basic hypothesis that there are negative correlation relationships between the IMF arrangements and the variables of the Jordanian economy.

Results: The study found that the IMF arrangements have a negative impact on many variables in the Jordanian economy, such as unemployment, external debt, balance of payments, and economic growth. The study also found that the arrangements have had a weak positive impact on Jordan's attractiveness to FDI. The study found that corruption in Jordan plays a major role in the continued cooperation between Jordan and the IMF, despite the failure of its arrangements to achieve their objectives for more than three decades.

Conclusions: The study found that the IMF arrangements have failed to achieve most of their economic targets with Jordan, and, therefore, there is no justification for continuing with more arrangements and programs of structural and economic reform without seriously reconsidering the various conditions that accompany them and that are demanded by the IMF from the Jordanian side