Capital Goods Imports and their Relationship with Economic Growth and Economic Openness in Iraq: An Analytical Study for the period 2004–2024
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Abstract:This research aims to analyse the impact of imports of capital goods on the economic growth and its relationship with economic openness over the period 2004 -2024. For this purpose, the descriptive-analytical approach is used based on the official data and economic indicators relevant to the research. However, the research found that the capital goods are linked with the Gross Domestic Production (GDP), which interpret the role of oil revenues in importing these goods. In addition, the research revealed a weak relationship between capital imports and economic openness, in which there is no parallel relationship between the two variables during the period of study. This implies the presence of low investment efficiency, and the absence of a strong coordination between investment policies and economic policies in general. Besides, the data analysis concludes that the high level of economic openness in Iraq does not necessarily reflects an improvement in the level of production structure. This asserts the persistent weakness of industrial sector that associated with high reliance on importing various inputs to the Iraqi economy. Finally, the research recommended linking types of imported capital goods and its quantities with the plans of economic development in addition to enhancing technological and technical capacities to ensure their efficient use and improving level of productivity.
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References
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