The impact of investment The impact of investment crowding out on economic growth in Iraq for the period (2004-2022rowth in Iraq for the period (2004-2022

Abstract

The competition between government investment and private investment has an impact on the performance of the Iraqi economy through increasing government debt and its impact on the decline in private investment, which leads to a decline in economic growth. The research aims to analyze the impact of investment crowding out on economic growth of Iraqi, as the decline in oil revenues due to fluctuations in oil prices and the expansion in government spending financed by internal and external government debt to finance the general budget deficit with weak tax revenues and other revenues, which leads to an increase in government investment and crowding out private investment in some cases, in addition to the lack of government support and interest in the private sector, which is reflected in the decline in private investment. Given the importance of the topic, the research came to know the effect of crowding out on economic growth of Iraqi (2004-2022) by using advanced standard methods and approaches from unit root tests, joint integration, error correction model (ECM) and immediate response function. The study concluded that there is a relationship between investment crowding out, economic growth the short term and an inverse relationship in the long term. The relationship between investment crowding out.