Measurement and Analysis of Relationship Between Governmental Spending and Total Local Production in Economy of Iraq from 1990-2018

Abstract

The research aims to measure and analyse the dynamic interactions (short and long term) between government spending as an independent variable and GDP as a dependent variable using the ARDL model. The research assumed that there is a direct, statistically significant relationship between government spending and gross domestic product, annual data covering the period (1990) was used. -2018). Finally, the results of the ARDL model test revealed to us that there is a common complementarity and a long-term equilibrium relationship between government spending and GDP Thus the results of the models proved the validity of the research hypothesis. Therefore, the research recommends that complementary relationship between them) and not competition or alternative. The research also recommended re-engineering government spending by directing and employing spending properly.