Analysis of the relationship between investment spending and the trade balance in Iraq and Egypt for the period (2004-2023)

Abstract

 This research examines the reality of investment expenditures and the trade balance in the Republics of Egypt and Iraq for the period 2004–2023, attempting to explore the nature of the relationship between them in light of the economic changes that both countries witnessed during the study period. It begins with the general assumption that investment expenditures have a potential role in influencing the performance of the trade balance, and that this influence varies depending on the nature and efficiency of the expenditures and the surrounding economic conditions.

The results indicate that investment expenditures were characterized by a degree of fluctuation during the study period, and that their impact on the trade balance was not uniform across different periods. This may be related to variations in the efficiency of investment spending allocation and its sectoral composition. In light of this, the research emphasizes the importance of improving the efficiency of investment expenditures and directing them toward productive sectors, which could contribute to supporting economic performance and improving the trade balance in both countries in the medium and long term.Keywords: Investment .expenditures, trade balance, Egypt and Iraq.