Analysis of the effectiveness of some macroeconomic variables on the industrial sector in Iraq for the period (2004-2020)

Abstract

The research aims to clarify the nature of the relationship between some macroeconomic variables represented (public spending, interest rate, exchange rate) and the industrial sector in Iraq for the period (2004-2020), which expresses the content of the Iraqi economy, and the use of standard analysis tools to know the impact of some macro variables (expenditure year, interest rate, exchange rate) on the industrial sector in Iraq for the duration of the study. The research reached to prove the validity of the hypothesis that some macroeconomic variables did not play a positive role in the Iraqi industrial sector for the period 2004-2020. where it was concluded through the results to a clear decline in its contribution to the output, as it did not exceed (3%) and with an average period of (2.3%) during the study, due to the weakness of production lines and the high level of costs as a result of obsolescence and loss of equipment in addition to the looting that this sector was subjected to. Accordingly the oil surpluses achieved each year and directing the development of economic growth and covering local manufacturing from imported raw materials or through the modernization of manufacturing methods and the use of technology capable of increasing production and reducing costs.