AN EMPIRICAL ANALYSIS OF THE EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: A CASE OF IRAQ'S ECONOMIC PERSPECTIVE

Abstract

This study aimed to examine the impact of foreign direct investment (FDI) on Iraq's economic growth (EG) from 2011 through 2021 utilizing a quantitative research technique and longitudinal study design. The unit root, co-integration, and Granger causality tests were used to examine the long-term and short-term association between FDI and EG. Principal findings indicate that variables were non-stationary at level but stationary at first difference. The co-integration results indicate no long-term link between FDI and EG. Other Granger causality tests imply that the association between FDI and EG is temporary. In addition to these findings, the current work is a significant contribution from both a theoretical and practical standpoint, allowing future researchers to understand the significance of FDI and EG. The researcher might also assist policymakers and government organizations in understanding the significance of FDI, which could help boost the gross domestic product and strengthen the economy.