The Impact of FDI Inflows on GDP Growth in Iraq for the period (2004-2017): An applied study

Abstract

This paper aims to examine the relationship between the changing foreign direct investment inflows and gross domestic product growth using yearly time series observations for the period (2004-2017). The current study proposed the hypothesis which investigated utilizing the novel econometrics methods such as unit root test, cointegration test and Granger causality test, the results revealed that existence of long run equilibrium relationship between the foreign direct investment inflows and gross domestic product growth during the period of the study, probably due to the little inflow to Iraq in the form to participate in pushing Iraqi economic growth due to the nonoil exports structure where average of total values of petroleum exports to total Iraqi value of exports reach to (99%) during the study period.