Measuring the relationship between the components of total demand and economic growth in Iraq 1990-2014 | ||
| AL-dananeer | ||
| Article 1, Volume 1, Issue 9, September 2018, Pages 15-36 | ||
| Author | ||
| Prof. Dr. Faris Karim Breihi Assistant lecturer Hassan Khalaf | ||
| Abstract | ||
| The present study aims to examine the relationship between the components of the aggregate demands and the gross domestic product (GDP) in Iraq for the period (1990-2014). The study uses the time series data at the current prices in a logarithmic form in addition to the distribution of delay model. The expanded Dickey-Fuller model was used to test whether the unit root is stationary which showed that all the studied variables were stationary at the first difference. In addition, the long and short run equilibrium relationship between these variables were studied along with the causality test of the variables. The Tests showed that the governmental expenditure has positive impact in the short run and negative effect on the governmental demand for the gross domestic product (GDP) for the long run. That means the growth decays as the governmental demand increases due to the inflexibility of production system because the productive activities are stopped and the oil revenues compensate the shortage in the domestic demands. The rest of the variables had no effect on the gross domestic product. | ||
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