An econometric study of the relationship between globalization, digital transformation and employment in Jordan (1980–2023)

The study analyzed the structure of income distribution and its impact on economic growth in Jordan from 1980 to 2023. It tested the hypothesis that a long-term equilibrium relationship exists between the independent variables and economic growth using the ARDL approach. The results showed that the F statistic of 2.88 was less than the tabular value at significance levels of 1%, 2.5%, 5%, and 10% for two lag periods. This indicated that the null hypothesis, suggesting no joint integration between the variables, was accepted, and the alternative hypothesis was rejected. The findings highlighted a negative impact of changes in the share of the top 1% on economic growth, while changes in the share of the top 10% and bottom 50% had a positive impact. Additionally, human capital negatively affected economic growth. The Error Correction Model (ECM) results suggested that short-run deviations from equilibrium could be corrected to restore long-run equilibrium. The error correction term (ECT) was statistically significant at the 5% level and carried a negative sign, indicating a tendency toward correction of imbalances in the long run.