Analysis of Relationship Between Trade Policy Trends and Unemployment Rates in Iraq

Abstract

Purpose: This research aims, to review trends of trade policy in Iraq. Theoretical framework: identifying the extent of impact of alternative policies aimed at achieving productive diversification on unemployment rates in the long and short term. Design/methodology/approach: The research sample included data to measure research variables for the period 2004-2020. The ARDL model was used to measure research variables. Findings: The main conclusion that the trade policy in Iraq continued to operate in isolation from the rest of economic policies, in light of the continued dependence on oil sector and inflexibility of the production system, all of which led to the lack of diversification of economic activity and weaken contribution of non-oil production sectors in produce and creating jobs, which led to continuing dependence on imports and high unemployment rates. Research, Practical & Social implications: the coordination between trade policy and the rest of economic policies are achieve a wide range of basic sustainable development goals, foremost of which is economic diversification in addition to increasing public revenues, creating opportunities, and diverse work in many fields. Originality/value: The findings show that success of trade policy in achieving its goals, especially in terms of its ability to influence unemployment rates.