Measuring and Analyzing the Determinants of Foreign Portfolio Investment in the Iraqi Stock Market during the Period (2015-2024(

Abstract

Foreign portfolio investment is one of the important financial variables in the stock market, which contributes to activating and developing the market, creating liquidity, and increasing savings. The research aims to test the impact of determinants (inflation rate, economic growth rate, exchange rate, gross domestic product, average per capita income, interest rate, stock market value, and trade openness) on foreign portfolio investment, represented by the net foreign trading volume in the Iraqi Stock Exchange during the period (2015-2024). (40) quarterly observations were analyzed using standard analysis based on the EViews 12 program through the application of the ARDL model. It was shown through the statistical significance of the (T) value that (GDP, interest rate, stock market value, and trade openness) have a significant impact on the net foreign trading volume in the short term, and in the long term, the economic growth rate and gross domestic product had a significant impact on the net foreign trading volume. The study recommended maintaining the stability of the security, political, and economic situation in Iraq to provide an attractive investment environment for foreign investors. It also recommended developing investment bodies, developing laws and regulations, improving the financial infrastructure, and implementing mechanisms to protect investor rights, ensuring clarity and transparency. It also recommended avoiding reliance on oil revenues as a source of state revenue, thus preventing the state from being affected by local or global fluctuations in oil prices.