Analysis of The Impact of Fiscal Policy on Some Indicators of the International Economic Relations of Iraq During the Period (2004-2021)

Abstract

The research aims to study the reality of fiscal policy in Iraq and analyze the relationship between it and some indicators of international economic relations in it during the period (20042021-). And the extent of the aforementioned policy’s contribution to the development of its international economic relations. The descriptive analytical approach was relied upon to demonstrate this relationship. Using the (FMOLS) method, based on theoretical sources and official data published by the Central Bank and the Iraqi Ministry of Planning. The standard results showed that there is a positive (positive) relationship between public revenues and the indicators of the total balance of payments, the exchange rate and economic openness, as an increase in the yield in public revenues by one unit leads to an increase in the total balance of payments by (1.57%) and by (0.39%) In the exchange rate by (1.11%) in the economic openness, but the relationship between public expenditures and the total balance of payments and the exchange rate was inverse, but direct with the economic openness, as a decrease in public expenditures by one unit leads to a decrease in the total balance of payments by (- 0.43% and -0.03% in the exchange rate and (0.001%) in economic openness. In light of what was presented a set of proposals, which the researcher hopes will contribute to improving the role of public expenditures and public revenues and redirecting them towards developing indicators (exchange rate - balance of payments - economic openness) for international economic relations in Iraq. Keywords: fiscal policy, public revenues, public expenditures, balance of payments, exchange rate, economic openness, the Iraqi economy.