Measuring and Analyzing the Relationship between Saving and Investment in the Iraqi Economy for the Period (2004-2020)

Abstract

            The research aims to know the issue of the link between saving and investment in the economy of a country that depends mainly on the export of oil, which is the Iraqi economy, using the methods of joint integration analysis, the most important of which is the newly developed boundary test method and the impulse response functions for the period (2004-2020). It is of a reciprocal nature between investment and saving in the long term, while the response of variables to shocks varies in the short term, and the investment response to changes in saving is slow and takes longer than saving’s response to changes in investment, and the causal relationship is moving from saving to investment, meaning it is in one direction and with a less significant degree From (1%) the estimates of the impulse response function for both variables showed that it fluctuates between positive and negative, which shows the lack of correlation between the policies of saving and investment in the ethnic economy. And the interrelationship between investment and saving policies.