Private, public investment and economic growth in Iraq, assessment of economic development avenues

Abstract EN

This work aims to analyze the role of private investment and public investment in the economic activity and growth for Iraq, 1970-2010, including assessing the possible economic development avenues.

The study is based on the theoretical framework for the elements of the performance set of economic literature.

Its estimates and also the evaluated probability models implementing an experimental method to select of best approximations.

Data of official sources have been used via the 'Minitab-16 software' for the estimates with recent statistics required acceptance tests.

The work reached conclusive results.

It has been found that the linear relationships of the long-term production function for Iraq apply with the best representation of growth and development factors.

They included: public investment, private investment, labor, oil revenue, exchange rates, interest rates, and inflation.

All are hypothetically negative except for the first.

The work confirmed the ence of foreign direct investment's role.

The Cobb-Douglas production function suggests only the first four as statistically significant, but private investment is negative.

While oil revenues overwhelmed, being the only source pointing out that it is the source of economic growth.

The status proposes reforms of public investments for the short-run, and diversification of sources of long-run growth.