http://www.iaeme.com/IJM/index.asp 21 editor@iaeme.com International Journal of Management Volume 12, Issue 1, January 2021, pp. 21-32. Article ID: IJM_12_01_003 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=12&IType=1 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.12.1.2021.003 © IAEME Publication Scopus Indexed THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURE AND ECONOMIC GROWTH IN JORDAN AN ECONOMETRIC STUDY DURING THE PERIOD OF 1990-2018 Dr. Nidal Ali Abbas Assistant Professor, Faculty of Economics and Administrative Sciences, Department of Economics, Zarqa University - Jordan ABSTRACT This study aims to determine the causal relationship between government expenditure and economic growth which is measured by real gross domestic product during the period (1990-2018) in Jordan. Therefore, for the purpose of achieving the aim of this study, a descriptive statistical approach was used to analyze and develop both the government expenditure and gross domestic product in Jordan. Also, the econometric analysis was adopted to determine the relationship between government expenditure and economic growth through a set of tests. Where the results of the Augmented Dickey-Fuller Test (ADF) showed that the variables of the study are non- stationary at level, however they become stationary after taking the first difference. As well as, selecting the causality using the Granger Causality Test to prove the validity of Wagner's law on the Jordanian economy. However, the result of the co-integration test indicated that there are two vectors integration approaches. As for the dynamic least squares test, it pointed out that the government expenditure has an important and positive impact on increasing the gross domestic product in the long run. Key words: government expenditure, economic growth, gross domestic product, Wagner's Law, Jordan Cite this Article: Nidal Ali Abbas, The Relationship between Government Expenditure and Economic Growth in Jordan an Econometric Study during the Period of 1990-2018, International Journal of Management, 12(1), 2021, pp 21-32. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1 1. INTRODUCTION Government expenditure is considered as one of the fiscal policy instruments and it represents the amount of the country’s involvement in the economic life and work to promote the economic activity towards achieving the exemplary economic growth. Whereas, many