The impact of foreign investment on the liquidity of financial markets
Applied Study in the Iraqi Stock Exchange for the period (2013-2017)
Search submitted to
College of Administration and Economics- Karbala University
It is part of the requirements for obtaining a higher diploma degree – administration of banks
In finance and banking
by
Ayat Saleh Hussein Al – Hilawi
Supervised by
Prof. Dr
Haydar Younis Khadum Al Mousawi
Abstract
Foreign investment of both types (direct, indirect) has a very important impact in the global economy, as its impact extended to many joints within the economy of any country, including financial markets and the current research to study the impact of foreign investment in the liquidity of financial markets and launched research to study the Iraq Stock Exchange .
For the importance of this topic has been the study of this type of investments and know their size in the Iraqi market for securities and the positive and negative factors in them and indicate the impact of these investments in the trading volume of the sectors listed in the Iraqi market for securities and the problems faced by the investor in terms of legislative and regulatory when investing in the Iraqi market for securities.
The study aimed to highlight the importance of foreign direct and indirect investment in the revitalization of the Iraqi market for securities and to identify the size of foreign direct and indirect investments and their relative importance in the Iraqi market for securities by sector and to know the impact of indirect foreign investments in the trading volume of a sample of sectors in the market Iraq Securities and stand on the reasons and constraints that prevent the promotion of foreign investment in the Iraqi market for securities.
The study was conducted on the analysis of data for all sectors listed in the Iraqi market for securities and then the selection of the most representative sectors of foreign direct investment as an approved research sample for the study for the period (2013-2017), and was used program statistical package for social sciences (v.23 SPSS) for the purpose of data analysis and extraction of results Related to correlation and multiple Abstract
regression (EXCEL 2010) to extract the relative importance of data analysis for each sector.
Statistical test results showed that there was a significant statistical effect among the main trading index of foreign investors in the volume of trading in a number of sectors including (banking sector, insurance sector, services sector, industry sector, tourism sector, agriculture sector and telecommunications sector).
Therefore, the study reached specific conclusions, the most important of which is that the foreign direct investment has an important positive role in the movement of shares trading in the Iraqi market for securities, which calls for enhancing the volume of these investments in the future.
The study came out with a set of recommendations, the most important of which is working on diversifying securities and developing new types of securities and trading them in the Iraqi Stock Exchange in order to attract new investments to the market, including indirect foreign in addition to work more seriously to link the Iraqi market with the global financial markets through An effective network can serve as an additional channel to attract foreign investment to the market.
