Measuring and analyzing the relationship between military spending and economic growth in Iraq for the period (2004-2019)

Abstract

The research deals with measuring and analyzing the relationship between military spending and economic growth expressed in the gross domestic product of the Iraqi economy during the period (2004-2019), especially in a country such as Iraq, where the volume of military spending reached approximately (3.5%) of the gross domestic product. For the year 2019, as well as the country's continuous need to develop its military and security capabilities as a result of the internal and external security conditions that the country is going through that may require more spending on the military sector. The research concluded with a set of conclusions, the most important of which is that there is a positive relationship between military spending and economic growth expressed in GDP, and that there is no common complementarity between the research variables, that is, the absence of a long-term equilibrium relationship, through the use of (Angel - Granger) methodology for joint integration, And that the gross domestic product causes military spending, according to the causation test of Granger, with two time lags between the variables in the short term, which were revealed by the self-regression vector model (VAR).