Analysis of the impact of trade openness on exchange rate fluctuations in Iraq for the period (2003-2022)

Abstract

The fundamental changes that have occurred in the global economy since the beginning of the seventies to the present time explain most of the fluctuations in the sources of external financing for developing countries, and the increase in the relative importance of foreign direct investment. Among these changes is a strong move towards the market system, liberalization of trade and investment systems, and increased integration into the global economy in which developing countries participated, after trade freedom and attracting foreign investment represented a factor of uncertainty and a source of instability for most developing countries. Thus, developing countries began to prepare the legal and economic environment for moving towards a market economy and trade openness, and to put in place a set of structural reform programs in their economies and to enact laws to remove trade barriers and cancel trade restrictions.