The impact of foreign direct investment on gross domestic capital formation in Iraq

 (for the period 2003-2019)

Research presented by the student (Ruwaida Thamer Abdel Halim)

to the Board of the College of Business and Economics to obtain a higher diploma in economics

SupervisorA.M.D. Salam Kazem Shani Al-Fatlawi

The global economy at the end of the twentieth century witnessed an increase in
interest in the issue of foreign direct investment, because it is considered the most
powerful and effective phenomenon in economic and international relations.
And Iraq, as it is understood, needs to rebuild the infrastructure, rebuild what was
destroyed by wars, and revive the productive sectors in the various economic sectors.
At the same time, this economy suffers from a large gap between revenues and
expenditures, and insufficient savings to meet the needs of the construction and
reconstruction process.
The importance of the role of foreign direct investment is that it is one of the sources
of external financing for the process of development and reconstruction of Iraq, and
this is linked to the possibility of entering foreign companies with their huge
financial capabilities and their ability to bring advanced technology, provide job
opportunities, introduce modern methods in management and work, and train
national cadres administratively and technically.
The research started from the hypothesis that foreign direct investment has a large
and effective role in influencing the economic indicators represented by (economic
growth, fixed capital formation, exchange rate and balance of payments). There are
also economic policies that can be followed to attract foreign direct investment to
Iraq.
The research also relied on the inductive approach, which aims to collect data and
interrelated relationships in an accurate manner in order to link them to a set of
general public relations. This approach is characterized by the researcher moving
from the part to the whole, or from the specific to the general.
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The research also relied on the standard aspect of the second chapter on the use of
the ARDL methodology, the Autoregressive Distributed Decelerations (ARDL)
model, which is considered the best alternative because it does not require that the
estimated variables have the same degree of integration.
Key words: foreign direct investment, fixed capital formation, gross domestic
product