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The Impact of Investment in The Telecommunications Sector on Economic Growth

The Impact of Investment in The Telecommunications Sector on Economic Growth Iraq is a case study.

To the Board of the College of Administration and Economics at the University of Karbala as a part of the requirements for obtaining a higher diploma in investment economics and economic feasibility studies

Supervisor Ass. Prof. Dr. Khudair Abbass

Abstract

Investment in general and foreign direct investment is one of the important economic activities that contribute effectively to pushing forward economic growth after this issue has become a major goal that most countries seek to achieve in order to increase national income and then increase the average per capita income, and the telecommunications sector It is considered one of the sectors with high added value and it achieves a great return for the state by imposing fees and taxes and because of its rapid expansion and due to the importance of this sector and the great financial returns it achieves, investment companies have competed to work in it, and therefore this research focused on measuring the impact of investment In the telecommunications sector on economic growth in Iraq for the period (2004-2019).

The research included an exposure to the concept of investment and the factors affecting it, its types and the most important theories explaining it. The research also dealt with a statement of the concept of economic growth, its determinants, types and its most important theories, and then the relationship of investment with economic growth, and then measuring and analyzing the relationship between investment in the telecommunications sector and economic growth through Analyzing the reality of communications in Iraq and then moving to a practical analysis by testing the stability of the model variables for the time series and then testing the joint integration and then estimating the self-regression model.

The research showed that there is a positive relationship between the gross domestic product (GDP) of the previous year and the gross domestic product of the current year, meaning that changing the GDP of the previous year by one unit will lead to an increase in the GDP for the current year by 0.99, as well as the effect is positive and this corresponds to the content of economic theory, As for the investment variable in the telecommunications sector (ITS) for a previous year, it is also related to an inverse relationship with the GDP for the current year as increasing the ITS for the previous year by one unit will lead to a decrease in the GDP for the current year by 6.79 units because the nature of the investment in the telecommunications sector is foreign investment. The returns from this investment will be transferred from it outside the country without benefiting from it locally, as well as the absence of a trend for the state to invest in this profitable sector.