Measuring the Effect of Total Injection Elements on Economic Growth in Iraq for the Period (2004-2020) Using the Error Correction Model

Abstract

Purpose: The paper aims to measure the impact of the dynamic relationship between the elements of total injection (private investment spending, comic spending, exports) on the one hand and the GDP growth rate that expresses economic growthusing the ARDL model. Theoretical framework: The elements of total injection are one of the main components of total demand: private investment spending, government spending, and exports. Private spending is one of the main activities that play an essential role in the country's economic development Government spending is one of the most crucial fiscal policy tools used by the government to influence and stimulate economic activity. Good export performance is an essential indicator of that government's foreign trade. All these elements significantly impact economic activity by producing and employing these elements in GDP and its growth. Design/methodology/approach: To test the hypothesis that there is a direct relationship between the elements of total injection and GDP growth. Quarterly data were used for the duration of (2004-2020). Findings: The results of the non-tests showed a common complementarity and a long-term equilibrium relationship between the total injection and the rate of economic growth. Therefore the results of the models proved the validity of the paper's hypothesis. Research, Practical & Social implications: the article suggested the need for the government to support the private sector, build complementary relations with it, restructure government spending and seek to increase its productivity to achieve financial returns. Originality/value: The research provides the government with support to the private sector, building complementary relations with it, restructuring government spending, and striving to increase its productivity to achieve financial returns from it, in addition to the need to diversify the economy and try to get rid of the unilateral economy.