Investment spending on the industrial sector and its impact on economic growth in Iraq For the period (2000-2015)

Abstract

The relation between governmental spending is shown by the success of the economic administration in the investment of the financial ability of Iraq. This will remove the distortion it suffers from on the one hand and in promoting the level of economic growth on the other, and political structures especially the revenue of petrol.

            This study aims at showing the effect of the spending investment on the industrial sector in the economic development and analyzing it depending the theoretical and applied frameworks. This will help decision makers to arrive at better solutions in future. The study shows that there is additional governmental expenditure which leads to an in crease in the production in the industrial sector and in the capital cost.

            Results of the study show that the values of product level, the capital and spending   investment are constant. This also show that there is mutual integration among these values with grade 1 (0). The averages of descending of the industrial sector coincide with the economic theory in that the increase of spending investment on the industrial sector in one dinar, this will to an increase in the production with (6.813) Iraqi dinar. Results of the adjusted R-Square are good with (91%). Results of Pearson test show that the relation among these values is and strong.