An Analysis of Exports and Imports and Their Effect on the Economic Growth in Iraq

Authors

  • Shene Mohammad Kamaran Abdulla Department of Technical Public Relations and Marketing, Technical College of Administration, Sulaimani Polytechnic University, Sulaimani, Kurdistan Region - F.R. Iraq
  • Hazhar Khalid Ali Department of Banking and Financial Sciences, College of Administration and Financial Sciences, Cihan University Slemani, Sulaimanyia, Kurdistan Region - F.R. Iraq

DOI:

https://doi.org/10.25079/ukhjss.v3n2y2019.pp68-76

Keywords:

Economic growth, exports, imports, Johansen co-integration, Granger causality

Abstract

The Iraqi economy faces more challenges than opportunities, especially in recent years due to the civil war, while basic reforms for merging the private and public sector have commenced. This paper examines the causal relationship between exports, imports, and Iraq’s economic growth. The data are annual time series for the period 1980-2017. Thereafter, the data are stationary in different levels. Johansen cointegration is applied to figure out the long-run association among the variables. Moreover, Granger causality test has been used to direct the causality among variables. This paper finds that in the long run, exports and imports on gross domestic product are co-integrated and variables have a long-run association. The Granger causality result shows that exports affect economic growth, while imports also have a positive impact on Iraq’s economic growth. On the contrary, the relationship between exports and imports show that any increase in the volume of exports will increase the volume of imports. However, the converse is not true as the volume of imports does not influence exports in Iraq.

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Author Biographies

  • Shene Mohammad Kamaran Abdulla, Department of Technical Public Relations and Marketing, Technical College of Administration, Sulaimani Polytechnic University, Sulaimani, Kurdistan Region - F.R. Iraq

    Ms. Shene serves as an assistant lecturer at the Department of Technical Public Relations and Marketing, Technical College of Administration, Sulaimani Polytechnic University, Sulaimani, Kurdistan Region-F.R. Iraq. Ms. Shene obtained her B.Sc. in accounting from the Technical College of Administration, Sulaimani Polytechnic University, Sulaimani, Kurdistan Region-F.R. Iraq in 2010 and she finished her masters studies in the Buckingham University in 2016 specialized in accounting and finance. Her research interests are corporation tax and economics. 

  • Hazhar Khalid Ali, Department of Banking and Financial Sciences, College of Administration and Financial Sciences, Cihan University Slemani, Sulaimanyia, Kurdistan Region - F.R. Iraq

    Mr.Hazhar is currently serving as an assistant lecturer at the Department of Banking and Financial Sciences, College of Administration and Financial Sciences, Cihan University Sulaimani, Sulaimanyia, Kurdistan Region-F.R. Iraq. He earned his B.Sc. in Accounting in 2010 from Salahaddin University-Erbil, Iraq. He also finished his master studies in Banking and Finance in 2015 at the Eastern Mediterranean University, Cyprus with a CGPA of 91.5/100. His areas of expertise are Investment Appraisal, Project Finance and Risk management. 

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Published

2019-12-28

Issue

Vol. 3 No. 2 (2019): ISSUE FIVE

Section

Research Articles

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How to Cite

An Analysis of Exports and Imports and Their Effect on the Economic Growth in Iraq. (2019). UKH Journal of Social Sciences, 3(2), 68-76. https://doi.org/10.25079/ukhjss.v3n2y2019.pp68-76

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