The impact of some macroeconomic variables on industrial exposure in Iraq is a case study (2004-2023)

Abstract

Industrial exposure is an important topic in international trade in the current era due to the liberalization of trade and economic openness to the world by many developing countries in order to attract foreign direct investment and develop their economies, which led to deepening economic exposure and dependence on advanced industrial countries. The research dealt with studying the impact of some macroeconomic variables (foreign direct investment, exchange rate, imported inflation) on industrial exposure in Iraq, in addition to measuring the impact of these variables for the period (2004-2023) through the program ((Eviews12). The search arrived that there is a structural imbalance in the gross domestic product in Iraq due to the low percentage of contribution of the manufacturing industry to it, which led to a decrease in the net added value of the manufacturing industries The dependence on crude oil exports and the backwardness of production structures in other sectors. The degree of non-oil industrial exposure reached an average of (548.49%), which is a very high percentage, meaning that Iraq relies heavily on the outside to meet the need for local demand for manufactured goods, which means the backwardness of the industrial sector and the failure to exploit the rich resources that Iraq possesses in developing the industrial economy.