The Impact of the Transportation Sector on the Jordanian Economy
DOI:
https://doi.org/10.35516/jjes.v11i2.2166Keywords:
Transport sector, input-output table, multipliers, inter-sector linkages, JordanAbstract
Objectives: This study aimed to assess the impact of the transport sector on the Jordanian economy. The study explores the interdependence between transport sector and other sectors.
Method: two main indices were adopted by analyzing the input-output tables for 2006 and 2019. The first indicator focused on forward and backward inter-sector linkages, while the second indicator examined the sector’s impact on output, income, employment, taxes, and imports through multipliers.
Results: The results of the first indicator revealed that the transport sector played a key role in terms of forward linkages, ranking fourth in 2006 and third in 2019. However, it did not fare well with respect to backward linkages, with its ranking dropping from fifth in 2006 to ninth in 2019. These findings emphasize the significance of the sector in driving growth, enhancing competitiveness, and attracting foreign investments. Additionally, the results indicated an apparent decline in the sector’s indicators for 2019 compared to 2006. This decline may be attributed to low efficiency, as indicated by global competitiveness reports, and the government’s energy policy, which liberalized the prices of oil products and imposed additional taxes on these products.
Conclusions: In view of the study findings, it is imperative for decision-makers to prioritize creating a conducive environment that supports and develops the sector, allowing it to achieve its desired goals of growth, competitiveness, foreign investment attraction, and tourism promotion, among others. Furthermore, the study recommends encouraging investment in an industrial base that strengthens backward linkages with the transport sector, such as the spare parts industry. Moreover, there is a need to stimulate the adoption of energy-efficient electric vehicles. Finally, the study recommends that future input-output tables include four detailed transport sectors, similar to other countries.
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