The impact of foreign direct investment on the balance of payments- the experiences of selected countries, with special reference to Iraq 

Introduction letter to

To the Board of the Faculty of Management and Economics – Karbala University, which is part of the requirements of obtaining a master’s degree in economics

A Thesis Submitted By

              Heyam Salah Abd-alratha Al-hassnawi

Under the supervision of Prof .Assist. Dr. Ammar Mahmood Hameed Al-Rubaye

Abstract:-        

The research problem is that the loss of all forms and means that contribute to attracting foreign direct investment towards the Iraqi economy reflected negatively on the Iraqi balance of payments. If foreign  direct  investment  flows towards the local  economy, will this lead to an improvement in the balance of payments situation? Does foreign  direct  investment  have a good effect mostly on the balance of payments? The type of foreign direct investment can have  a different effect  on the balance of payments. Can  international experiences  be  used to  encourage  this in Iraqi  economy? Balance of  payments  Statement  of  the reality  of  the impact  of  foreign  investment on the balance of   payments in Iraq Proposing a set  of  policies that  encourage  direct  foreign  investments  in the light of international experiences  with the aim of reaching  the  goals  identified  in  the  research  and  proving  the  research  hypothesis the thesis was divided  into  three  chapters. The first chapter  represents  the  theoretical framework for  foreign direct investment and the  balance of payments. The  second chapter  represents international experiences of the impact  of  foreign  direct investment on the balance of payments. The  third chapter  represents  the  reality  of the relationship between foreign direct investments and the balance of  payments  in Iraq. In addition, the thesis reached a set of conclusions and  recommendations, including  the flexibility of  the  economy, which  may indicate the ease of shifting output from the local buyer to the external one, which has to do a lot about the efficiency of the process. Correction likewise, the correction is facilitated by the  high elasticity of demand  in foreign  markets and by the elasticity  of  demand in foreign markets  and  the elasticity of  prices locally. The state must  manage the  revenues of  the oil  sector  more rationally, which guarantees it in the medium and long term the possibility of  getting out of the oil cycle  through sovereign  funds.