The Role of Foreign direct investments in the economic growth in Iraq during the period 1980-2013

Abstract

Foreign direct investments are considered one of the means to open the developed countries markets with new goods that are produced by them with the developing countries. Also, the foreign direct investments is an important source to polarize the foreign currencies to the developing countries that suffer from debts and considerably depend on imports, in addition to the several advantages of this type of investment. Therefore, the flows of the foreign direct investments witnessed a great increase in the developing countries since the decade of eighties in the past century due to the incapability of resuming the foreign assistances and the bank loans alone to finance the economic development in those countries. From this point, Iraq focused its attention to attract this kind of investments as one of means used to bridge this gap between its financial and local resources through accommodating the suitable climate for this investment. So, this research aimed at measuring and analyzing the role of the foreign direct investment in economic growth in Iraq during the period 1980-2013. In this research the result of the practical aspect showed the significance of the variable of foreign direct investment X1, export X2, industrial product X5, Local investment X6, population growth rate X8, Capital accumulation ratio to GDP X9, General expenditure X10, with positive relation with the dependent variable (gross domestic product Y), while the significance of the variable import X3, deficit in general budget X4, average inflation X7, with a negative relation with the dependent variable, there were no significance for the variable mean number of the education years X11, though out the period of the research.