Economic growth related to Iraqi government Size

Abstract

Background: The aim of the current research was to studying the impacts of the government size on an economic growth of Iraq. In spite of the high rate of the government spending, there are no good impact on economic growth. Methods: Data was collected from Central Bank of Iraq, including, the dependent variables, which were Gross domestic product and annual growth. We have used the ARDL method to analyses the data using canonical correlation analysis. The study included the effect relationship between the independent variables and the dependent variables, each independently. In addition the multiple linear regresion equation and tests (T), test (F) to test the significance, and coefficients of determination or interpretation (R2) to find out the percentage of interpretation of the independent variable from the dependent variable was used. Results: the findings of research based on estimation of the regression model using ARDL showed that the government size has a positive and statistically significant effect on Iraqi economic growth. Conclusion: It was noted that fluctuations in crude oil prices are directly reflected on oil revenues and thus on the volume of public expenditures, which affects the economic growth.