Business Series

Financial Innovations and the Interest Elasticity of Money Demand in Jordan (2009-2022)

Ziad Abu-Lila, Abdallah Ghazo — Mon, 22 Jul 2024 00:00:00 +0200

This study aimed to determine the relationship between financial innovations and the interest elasticity of money demand, and based on a set of statistical tests, the ordinary least squares method was determined to achieve this goal.Using quarterly data on the Jordanian economy for the period (2009-2022), the study estimated the demand for money as a function of income and interest rate.

The empirical results reached in this study showed that all determinants of money demand have the expected signs and were statistically significant. Regarding the relationship between financial innovations and the interest elasticity of money demand, the results indicated that financial innovations after 2016 reduced the sensitivity of money demand to interest rate. Therefore, the absolute value of the interest elasticity of money demand decreased, which means an increase in the effectiveness of monetary policy as financial innovations may improve the efficiency of the financial system, in a way that facilitates the work of monetary policy and increases its effectiveness. However, monetary policy makers must monitor these innovations and developments and limit the negative changes that may accompany them, and work to design a modern monetary policy that is in line with these developments.

Performance of the Supply Chain in Operational Excellence: A Field Study in Jordanian Pharmaceutical Companies

Shaima Jaffal, Khaled Alzou’bi — Mon, 22 Jul 2024 00:00:00 +0200

This study aims to identify the role of supply chain performance dimensions (cost, flexibility, delivery, and responsiveness) in achieving operational excellence dimensions (leadership excellence, product excellence, employee excellence, organizational culture excellence, and strategic excellence) in Jordanian pharmaceutical companies. The study population includes all senior and middle managers (1016 employees) in (22) pharmaceutical companies in Amman. A stratified random proportional sample was used to represent the study population. The descriptive analytical approach was used to achieve the study objectives and test its hypotheses. A questionnaire was used as the main tool for data collection, consisting of (45) items. Several statistical methods were used, including arithmetic means, standard deviations, multiple regression analysis, and the (SPSS.V.25) statistical package. After analyzing the study data and hypotheses, the study reached several results, the most important of which are: The overall performance index of supply chain performance was high to moderate. The level of operational excellence was also high. The study showed that there is an effect of supply chain performance dimensions (flexibility, delivery, and responsiveness) on operational excellence at a significance level of (α ≤ 0.05) in Jordanian pharmaceutical companies. The study recommended the need to build a positive work environment that depends on respect, appreciation, and cooperation by Jordanian pharmaceutical companies, which contributes to raising employees' morale and productivity, and reflects on achieving operational excellence and enhancing its position in the local and global market.

Factors Affecting Foreign Patients’ Satisfaction towards Medical Tourism Services in Jordan

Abdel Fattah Al-Azzam , Hayel Alserhan, Sayel Alserhan — Mon, 22 Jul 2024 00:00:00 +0200

Governments invest a great deal of time, resources, and money in promoting medical tourism, which seeks to satisfy patients by offering them medical care. This study examined the impact of various factors, including quality of care, cost, medical staff services, and hospital environment, on foreign patients' satisfaction with Jordanian medical tourism services. To collect data, a questionnaire was distributed to a sample of 320 foreign patients in the public and private hospitals in Amman, Jordan. To analyze the data, the Social Statistical Package for Social Sciences (SPSS) was used. The findings of the study were that of the environment of the hospital and the service of medical staff had the most significant impact factors. Overall, the findings supported a positive effect quality of medical care, cost of medical care, services of medical staff, and the environment of the hospital on the level of satisfaction among foreign patients about Jordanian medical tourism. Lastly, the study recommends that have the capacity of the Ministry of Tourism, the Ministry of Health, and practitioners to uphold the standard of care and attract a sizable influx of international medical patients to Jordan.

The Relationship between Crude Oil Prices and the Gross Domestic Product, Inflation, and Unemployment: Evidence from Jordan

Mansour Khazaleh — Mon, 22 Jul 2024 00:00:00 +0200

The primary goal of this study is to assess the effect of oil prices on Jordan's gross domestic product, inflation, and unemployment. The GDP represents a summation of gross value added via all resident producers in the economy and any product taxes not involved in the evaluation of output, divided by mid-year population. While the concept of unemployment denotes to the portion of the labor force that is without work but available for and looking for employment, as well as to inflation as stately by the consumer price index by using quarterly time series data from 2000 to 2021. The study employs an autoregressive distributed lag (ARDL) equations system or a multivariate ARDL model to analyze the relationship. The findings indicate that in panel A, the ARDL(0,0) results suggest the absence of both short-term and long-term effects of oil prices on GDP, inflation, and unemployment. Conversely, panel B demonstrates that there are no immediate or prolonged impact of oil prices on unemployment (UNE) based on the ARDL(1,0) analysis. However, in panel C, the ARDL-ECM (1,0) highlights the existence of short-term and long-term impacts on inflation by oil prices. Decision makers in the Jordanian economy could employ the outcomes of this study to formulate the suitable policies that assist in dealing with the quantities of the oil imports from different countries which will directly affect in minimizing unemployment rates among Jordanians.