Measurement and Analysis of Total Local Production Effect on Investment Spending in Iraq from 1990-2018

Investment, gross domestic product, the standard model

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August 1, 2021

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Investment is one of the important economic activities that occupies fundamental place in the priorities of economic studies because the size of investment determines the volume of production and income and then the rate of economic growth and contributes to pushing the wheel of economic growth, so this research tries to measure the function of investment spending in the Iraqi economy during the extended period From 1990-2018, using the ARDL model, the results of this study showed that there is a long-term equilibrium relationship between income and investment spending and that investment spending depends largely on income, meaning that the relationship between investment spending and income is positive, and the marginal propensity to invest is 0.13.