The Impact of Local and Foreign Direct Investment on the Gross Domestic Product in Iraq for the Period (2004-2020)
Both domestic and foreign direct investment have an important and significant role in the development of the economies of countries, especially foreign direct investment. This is embodied through the transfer of modern technology and expertise, as well as the flow of capital to countries, especially developing ones, which always suffer from low rates of savings necessary to finance the process. Economic development, and foreign investment has an important role in activating and promoting domestic investment It is considered complementary to it in various aspects and economic activities, and since the Arab countries, including Iraq, suffer from major structural imbalances in their economies, facing the trap of foreign debt and heavy dependence on oil, it was necessary to increase growth rates and economic diversification through activating both domestic and foreign investment. ,The aim of the research is to identify the test of the extent of the impact of local and foreign direct investment on a basic macroeconomic variable in Iraq during the study period, which is the gross domestic product, through the use of an appropriate standard model, which is the ARDL model , and the study found To the existence of a positive , significant relationship between foreign direct investment and GDP in the long term, as an increase in foreign direct investment by (1%) leads to an increase in GDP by (0.3113) ,In addition, there is also a positive and significant relationship between direct domestic investment and GDP in the long term, meaning that an increase in domestic direct investment by (1%) leads to an increase in GDP by (0.3368).The study recommended that the Iraqi government work hard to create an appropriate and attractive investment environment for investments by making the determinants of the investment environment in favor of attracting investments such as creating infrastructure, fighting financial and administrative corruption, modernizing the financial and banking sector, facilitating administrative procedures and eliminating administrative red tape, securing investment sites The protection of investors, especially foreigners, the correct and effective promotion of investment opportunities available in Iraq to investors , and giving the National Investment Commission and its branches in the governorates independence and a greater role in order to play their active role in attracting investments through activating the role of the single window and investor services and applying Investment Law No. (13). ) for the year (2006) and its subsequent amendments.