Analyzing the relationship between Public debt and investment in Iraq for the period (2004-2020)

Abstract

With public expenditures increasing at high rates and oil prices fluctuating as the main source of public revenues, Iraqi governments have become addicted to filling the deficit in the general budget by borrowing, whether internal or external borrowing. Public debt rates have different economic effects on some economic variables, including investment, as the research aims to show the impact of public debt on investment in Iraq.

     The relationship between public debt and investment in Iraq during the period (2004-2020) was tested using the ARDL model. The results showed the weak impact of public debt, both internal and external, on investment in Iraq during the study period, which indicates the limited impact of public debt on investment and the latter’s association with variables other than public debt, in terms of the lack of a safe and stable environment for

investment, as well as the weak support provided by the sector year in investment development.