Global economic transformations and their impact on economic growth in Iraq from 2003 to 2020

Abstract

The volume of global economic transfers could lead to increased investments by Iraqi and foreign institutions in Iraqi infrastructure and various economic projects. Increased investment may, in turn, increase GDP, create jobs, and improve the lives of citizens. During the period in question, Iraq was affected by unstable security conditions, including war, internal conflict, and terrorist attacks. These security challenges may affect Iraq's ability to attract economic remittances and implement the investments necessary for economic growth. The oil sector is one of Iraq's most important economic sectors and is greatly affected by global economic transformations. Historically, after the collapse of the former Iraqi regime in 2003, oil production increased, contributing to economic growth. Economic growth in Iraq may slow during specific periods due to global economic shifts, such as falling oil prices and the impact of the 2008 global financial crisis. Security challenges, corruption, and lack of investment in non-oil sectors may harm economic growth in Iraq. Therefore, this study aimed to conduct a standard analytical study of the role of remittances in supporting economic growth in Iraq from 2003 to 2020. The study concluded that global economic remittances positively impact economic growth at a significance level of 5%.