Analysis Of The Interaction Between Bank Credit And Government Spending In Iraq For The Period (2014-2017)

Abstract

Abstract

Iraq's economy is mainly a rental economy، with its public budgets relying on a semi-exclusive source of finance، represented in oil. Therefore، the decline in prices after mid-2014 and the subsequent decrease in government spending have affected many economic sectors. The research tackled the problem of the existence of a government spending crisis، both current and investment، resulting fro    m the decline in oil prices. The researcher used the historical descriptive method to prove the existence of the problem، and analyzed the economic sectors that make up the GDP and the degree of by the decrease in government spending. that it is affected On the other hand، cash credit directed to the same sectors was analyzed and the extent of credit contribution was measured in order to reduce the impact of the decrease in expenditure. The study reached a number of conclusions، the most important of which is that bank credit has contributed to reducing some of the economic impacts related to the water and electricity sectors and social and personal development services، while the credit has not positively affected the construction، agriculture and forestry sectors during the crisis years. The researcher recommended reducing the impact of the government spending crisis on the affected economic sectors through a credit policy capable of expanding and directing credit to these sectors.