The Families’ Behavior in Consuming Imported Goods and its Relationship to the Trade Deficit in the Iraqi Economy

Abstract

The Iraqi families ’behaviors in consuming imported goods have affected the treatment or reduction of the severe imbalance between the trade balance deficit and the government budget deficit. furthermore, these consumer behaviors have become an obstacle to the effectiveness of macroeconomic policies (monetary, financial, and commercial) in treating the problem of depletion of foreign reserves and the ineffectiveness of the interest rate and exchange activating bank credit and the prevailing of current spending over investment. Thus decreasing the tax base and the inflexibility of government revenue sources and commodity dumping, and the continuing impact of these economic imbalances (which were created by the accumulation of ineffective economic policies and programs) has led to the inefficiency of treatment and targeted and measures to find solutions to these imbalances and then Activating the local economy. That requires understanding household behaviors in consuming imported goods and identifying the factors affecting these consumer behaviors, which required a survey of (1000) families that included several realistic and hypothetical indicators to determine the general trend and understand these behaviors and then come out with conclusions that contribute to treating the imbalances Economical at its root.