The Impact Of foreign Direct Investment On The Iraqi Balance Of Payments For The Period (2004-2019)

Abstract

This research aims to identify the impact of foreign direct investment on the Iraqi balance of payments for the period (2004-2019). As for the standard applied side, only the economic measurement of the impact of foreign direct investment on the balance of payments for the period under study was used, and to achieve this, the Autoregressive Distributed Delay (ARDL) model was used. Direct results in Iraq, which negatively affected the Iraqi balance of payments. As for the results of the standard analytical side, according to the results of the Bounds test and according to the (ARDL) model, there is a long-term direct equilibrium relationship between the independent variable "Foreign Direct Investment" (FDI). And the dependent variable "Balance of Payments" (BP) according to the (ARDL) model. It was also shown through the standard results that the value of the error correction vector coefficient (ECM) between foreign direct investment and the balance of payments, as its value reached (-0.5) at a significant level less than (5%) This indicates that errors in the short term are automatically corrected over time, and the tests also proved that the model is suitable and that it is free of all standard problems.