The Impact of Government Spending on Economic Diversification for the Period (2004-2019) and its Reflection on the Path of Rehabilitation of the Iraqi Economy
The research aims to measure and analyze the relationship between government spending and economic diversification in Iraq for the period (2004-2019), using the ARDL model. The research concluded that there is a long-term positive equilibrium relationship between investment spending and economic diversification in Iraq. When investment spending increases by (1%), this will lead to an increase in economic diversification by (0.23%), assuming that operating spending is stable, and the opposite happens in the case of decline. In addition to the existence of a long-term inverse equilibrium relationship between operating spending and economic diversification in Iraq, as an increase in operating spending by (1%) will lead to a decrease in economic diversification by (0.73%), assuming the stability of investment spending, and the opposite will happen in the event of decline.