The Impact of Financial Determinants On Bank Deposits Using ARDL Model

Authors

M. H. Saleh, Department of Finance, The University of Jordan, Aqaba, JordanFollow
O. Jawabreh, Department of Hotel Management, Faculty of Tourism and Hospitality, The University of Jordan, Aqaba, JordanFollow
J. J. Jaber, Department of Finance, The University of Jordan, Aqaba, JordanFollow
A. T. Garaibeh, Department of Accounting, The University of Jordan, Aqaba. JordanFollow
B. J. A. Ali, Accounting and Finance Department, Applied Science University, Kingdom of BahrainFollow
A. Ali, Department of Management, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al kharj 11942, Saudi ArabiaFollow

Author Country (or Countries)

Jordan

Abstract

The purpose of this research is to quantify the impact of macroeconomic factors on Jordanian bank deposits in the context of the CoVD-19 epidemic. The annual data are collected between 1980 and 2020. The novel Autoregressive distributed lag (ARDL) model is suggested to evaluate the link between bank deposits and macroeconomic factors. The findings of Grangers causality test indicate that there is a one-way causal link between deposits and macroeconomic factors. Moreover, the study shows no causal link between financial shocks and bank deposits. In addition, the border test investigates the existence of a long-term equilibrium between variables. To attain long-term equilibrium, the imbalance in the short-term equilibrium is adjusted at a rate of 11.6%. Based on the Theil test, the new model is suitable for econometric difficulties and predictability.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/jsap/120211

Recommended Citation

H. Saleh, M.; Jawabreh, O.; J. Jaber, J.; T. Garaibeh, A.; J. A. Ali, B.; and Ali, A. (2023) "The Impact of Financial Determinants On Bank Deposits Using ARDL Model," Journal of Statistics Applications & Probability: Vol. 12: Iss. 2, Article 11.
DOI: http://dx.doi.org/10.18576/jsap/120211
Available at: https://digitalcommons.aaru.edu.jo/jsap/vol12/iss2/11