Comparative Approach of Economic Growth Engines (Senegal vs. Jordan) using Granger Causality Test
Comparative Approach of Economic Growth Engines (Senegal vs. Jordan) using Granger Causality Test

Summary/Abstract: The purpose of this paper is to analyze the causality between eight purposefully selected variables and the economic growth in two countries (Senegal and Jordan) and to assess the relationship of these variables for the period 1990 to 2020. A time-series econometric technique (Granger causality) has been applied to test the hypothesis of the economic growth pillars in a comparative approach. The dependent variable in the model is the economic growth, measured by the GDP per capita. The eight variables which influence economic growth engines in the target countries for this study (Senegal and Jordan) are: gross fixed capital formation (% of GDP), gross capital formation (% of GDP), population aged 15-64 (% of total population), net official development assistance and official aid received (foreign aid), agriculture added value, industry added value, volume of imports and volume of exports. The results revealed the impact of economic growth drivers on GDP per capita in each country and provide governmental decisionmakers valuable insights on finding the optimal balance between the macroeconomic indicators leading to economic growth.

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