Impact of Monetary policy on Financing Small Projects in Iraq for the period (2004 - 2023)

Abstract

Small Projects play vital roles in the economy, which are usually useful in achieving macroeconomic objectives. The research problem arises by asking how the relationship between the monetary authority and banks as a donor and Small Projects as a recipient can be organized and the nature of the relationship between them. The research aims to address the role of monetary policy in financing Small Projects. Therefore, this study empirically examines the impact of monetary policy on financing small enterprises in Iraq, which extends from 2004 to 2023. The time series data were subjected to the unit root test to ensure the stability of variables. The results of ARDL showed a long-term equilibrium relationship between the indicators of the monetary authority and financing Small Projects in the Iraqi economy. The result revealed that the interest rate has a positive effect on financing small enterprises. On the other hand, it was found that the inflation rate has an effect, but negatively, on financing Small Projects. It was found