An econometric study of the impact of economic exposure on the current account in Iraq during the period (1990-2019)

Abstract

This study aims to study the impact of economic exposure on the current account in Iraq by applying autoregressive distributed lag model (ARDL) to cointegration using annual data for the period from 1990 to 2019. The bounds tests suggest that the variables of are bound together in the long-run when current account is the dependent variable. As for the diagnostic tests for the validity of the standard model, as a whole, all results confirmed the validity of the used model and that it has not the problem of heterogeneity, as well as the serial autocorrelation of the residuals, and that the parameters are stable in the long term.