The impact of FDI inflows and outflows on economic growth of Iraq

Abstract EN

Foreign direct investment (FDI) is a main part of investment since the aim is to obtain lasting interest or effective control over an enterprise operating outside of the investor's economy.

Objective; the main objective of this study is to examine the impact of FDI inflows and outflows on the economic growth of Iraq from (1980 to 2017).

Method and Sample; to accomplish that ARDL approach was used.

Result; the study results show FDI inflows for Iraq have a significant and positive impact on economic growth, while, FDI outflows of Iraq have a negative and statistically significant impact on economic growth.

Finding; the study found that Gulf War has a negative and significant impact on economic growth (GDP) within the study period.

Recommendation; this study's recommendation is to diversify the government revenue source by diversifying the foreign market sources and providing new services to attract new foreign investors.