The impact of government-directed spending on the structure of the labor force and economic growth in Iraq.
A Thesis Submitted to the Council of the College of Administration and Economics / University of Karbala in Partial Fulfillment of the Requirements for the Degree of Master of Science in Economics
ByStudent: Hussein Kadhim Shaker Al-Aaraji
Supervisor:Asst. Prof. Dr. Kadhim Saad Al-Aaraji
Abstract:
This research addresses “The Impact of Government-Directed Spending on the Structure of the Labor Force and Economic Growth in Iraq: 2004-2022.” It focuses on analyzing the tools of government-directed spending, such as expenditures on education, health, research and development, and training.
The Iraqi economy faces a significant challenge due to its excessive reliance on oil revenues, which has led to a lack of focus on developing the labor force in other sectors. Therefore, this study is important as it analyzes and measures labor force indicators and their impact on promoting economic growth, as these indicators are key drivers of progress and sustainable development in Iraq. The central research question is: Is there an effect of labor force indicators on the structure of GDP? Based on this, the study adopts the hypothesis that increasing attention to labor force indicators has a significant impact on the structure of GDP, particularly in the commodity, distribution, and service sectors.
The research aims to achieve several objectives, including identifying the concepts of labor force indicators and economic growth, evaluating the impact of the development of labor force indicators on growth, and exploring various approaches and models related to labor force indicators and economic growth theories. Using the Autoregressive Distributed Lag (ARDL) model for data analysis, the study aims to provide comprehensive insights on how to improve the labor force structure to support sustainable economic growth, enhance Iraq’s ability to adapt to future challenges, and achieve balanced development.
The key conclusions reached by the study are as follows: The research shows that sustainable investments in education, health, and research and development are effective strategies for achieving qualitative improvements in the labor force. These investments not only contribute to enhancing its efficiency and its ability to integrate into high-value-added sectors but also reduce dependence on the oil sector and promote the diversification of the Iraqi economy, ensuring sustainable economic growth.
The key recommendations presented for increasing competitiveness and enhancing innovation in Iraq are as follows: It is recommended to intensify investments in research and development by providing incentives for the private sector and research centers. Additionally, specialized innovation and research centers should be established in collaboration with universities and academic institutions to develop new technologies that support economic competitiveness and enhance Iraq’s capacity for innovation across various sectors
