Economic openness and its impact on economic growth: An Analytical study of the Hashemite Kingdom of Jordan for the years 1995-2015

Jordan is one of the countries that have been concerned, especially in the last two decades, with the development of the foreign trade sector as an indicator of economic openness and as an important tool to raise the economic growth rate to achieve reasonable levels of prosperity for Jordanian citizens. Foreign trade is economically important as a driver of economic growth. The study draws its importance on its analysis of the economic implications of the Jordanian economys orientation towards policies of economic openness with the outside world, considering the fact that globalization and privatization are expanding globally. The study aims to identify the concept of economic openness and stages of growth. It also aims to analyze the reality of the trade balance and its impact on economic growth in Jordan for the years 1995-1995. In addition, it seeks to measure the economic and development impact of the foreign trade sector. The researchers used the analytical descriptive approach for its suitability to the subject of the study. They analyzed the reality of the Jordanian economy through providing figures offered by official sources. The study concluded that the economic openness did not contribute much in the growth of the Jordanian economy and in its exposure to the outside world. This is so because Jordanian economy was directly affected by global economic crisis, which reflected the fragility of the Jordanian commercial policy that led to sustainable deficit in this policy that worsened over time. This policy proved that it was not temporary or contingent; in fact it led to a relative stability in the unemployment rate in the Jordanian market. The study recommends that it is crucial to attend to the local market through an increased public expenditure and stimulation of total demand through minimizing the commercial deficit and the achievement of reasonable rates in economic growth. Jordan needs to adopt balanced economic policies based on maximizing domestic resources and investment in productive sectors of the economy instead of relying on privatization programs.