Evaluating the overall performance of the Iraqi economy using the evolution of kaldor's magic square variables during the period 1990-2019

Abstract

Developed and developing countries alike seek to achieve a set of major economic goals by drawing plans and strategies that determine the economic path of the state within the framework of macroeconomic policies. Therefore, the process of evaluating the reality of the macroeconomic and determining the extent to which these goals are achieved is of great importance, so this study will try Assessing the Iraqi economic reality during the period 1990-2019 through the graphic representation mechanism proposed by the French Academy (Versailles) based on the idea of ​​the magic square that the economist Nicholas Kaldor came up with by defining four basic indicators for evaluation, and based on the premise that (the evaluation of the actual reality of the objectives A square like the role in Iraq is very far, especially for some of its objectives, from the optimal state of the aforementioned square.

To verify this hypothesis, the research was divided into two sections, the first dealt with the theoretical rooting of the idea of ​​Nicholas Kaldor square in terms of concept and objectives, while the second dealt with the evaluation of the reality of the Nicholas Kaldor square variables in the Iraqi economy.

The results of the study confirmed the hypothesis developed, as it proved the deviation of the indicators of Nicholas Kaldor square from the ideal situation, while the study recommended the need to work on diversifying the Iraqi economy and paying attention to increasing and diversifying sources of income and financing, and not relying on a single source of income (the oil sector), which would make The Iraqi economy is captive to its price fluctuations and internal and external crises, and this is done through coordination between economic policies in finding these sources, especially local and foreign investments, in order to address structural imbalances and build a solid investment base that supports the productive sectors and raises the mechanisms of transmission of the effects of economic policies to improve the development of macroeconomic indicators.