Financial and Monetary Variables Role in Economic Growth of Iraq

Abstract

Background: The impact of economic policies on economic activities is one of the important topics in macroeconomic analysis, which is still debated. While proponents of the monetary school see monetary policy as the most effective, we find that Keynesian proponents emphasize the importance of fiscal policy in achieving economic growth. So the aim of the current research was to Studying the impact of monetary policies on growth by estimating and analyzing the impact of monetary variables towards financial variables on economic growth. Methods: Data was collected from Central Bank of Iraq, the present study included, which the variable (GDP growth) is the dependent variable, in the current study, there will be a set of simple standard models for describing money supply. As an independent variable consisting of a group of sub-independent variables, through these following variables (Exports of goods and service, Final consumption expenditure, Trade of GDP. When using regression analysis, it is customary to analyze the predictive ability of a multi-economic model that includes two or more independent variables with a dependent variable. Results: the outcomes of this research based on the estimation of regression models using ARDL has been showed that the monetary and financial variables have a statistically significant and positive effect on economic growth in Iraqi.