The reality of productive capacity in the Iraqi economy and ways to enhance it in light of the developments of digital transformation

Abstract

This study aims to analyze the mechanisms for enhancing productive capacity in Iraq under digital transformation by highlighting the structural role of digitalization in increasing total factor productivity and improving resource allocation efficiency. The study demonstrates that digital transformation does not automatically generate productivity gains; rather, it requires complementary conditions, including digital human capital, institutional quality, and effective governance. Furthermore, the study emphasizes that integrating digital policies with education and economic diversification strategies is essential for transforming digital transformation into a sustainable driver of productivity growth in the Iraqi economy.