The impact of Eternal debt and development on economic growth in Iraq for (2018-2000):An Analytical Econometric Study

Abstract

Iraq is one of the most global economies suffering from international financial burdens, most notably the accumulation of external debt for more than two decades; As a result of concluding international debt contracts with a group of countries who took it upon themselves to support Iraq during the war and throughout the sanctions imposed on the country. The World Bank, the International Monetary Fund and the Bank for International Settlements estimated the external debt owed by Iraq (120 ) billion dollars in (2004 ), This external debt constitutes significant burden on Iraq’s general budget. but after the Emergency Post-Conflict Assistance agreement with the International Monetary Fund, Iraq’s external debt was reduced from (120 ) billion dollars in 2004 to (72 ) billion dollars in 201 8. As a result, the purpose of this study is to demonstrate the impact of foreign debt and official development assistance on economic growth in Iraq. To accomplish this, the study used a (Econometric - analytical) approach, collecting secondary data from various sources for the period (201 8-2000 ). Finally, the study reached a number of conclusions; That, despite Iraq’s economic growth, the impact of external debt on GDP during the period (201 8-2000 ) was negative. Inflation has also had a negative influence on GDP. While the impact of official development assistance was positive on economic growth during the study period. Accordingly, it is necessary to work on returning the state’s foreign debt on the one hand and increasing development aid on the other hand, in order to reduce the proportion of external debt from the gross domestic product and increase international development investments to Iraq.