Effects of Monetary and Fiscal Policies on Economic Growth: An Empirical Study On The Iraqi Economy

Abstract

The purpose of the study is to explain the effects of monetary and fiscal policies on economic growth in Iraq. The dependent variable is the economic growth rate, and independent ones are exchange rate, inflation, M2 as a monetary instrument, while public debt, public expenditure, and government revenue are as fiscal instruments. The data were obtained from the Central Bank of Iraq and covers the period of 2005-2019. ARDL Bound Test and OLS were used to estimate the effects of monetary and fiscal policies on growth respectively. As for monetary policy, the results revealed that the exchange rate harms economic growth, while inflation and money supply positively affect economic growth. In terms of fiscal policy, the effects of government debt and government spending on growth seemed to be negative, while government revenues seemed to be positive

Keywords

• Economic Growth
• Fiscal policy
• Monetary Policy
• Inflation
• Government Revenue, and Spending

Para ve Maliye Politikalarının Ekonomik Büyüme Üzerindeki Etkileri: Irak Ekonomisi Üzerine Ampirik Bir Çalışma

Abstract

Çalışmanın amacı, para ve maliye politikalarının Irak'taki ekonomik büyüme üzerindeki etkilerini açıklamaktır. Bağımlı değişken ekonomik büyüme oranıdır ve bağımsız değişkenler döviz kuru, enflasyon, parasal bir araç olarak M2, mali araçlar olarak kamu borcu, kamu harcamaları ve devlet geliridir. Veriler Irak Merkez Bankası'ndan alınmıştır ve 2005-2019 dönemini kapsamaktadır. ARDL Bound Test ve OLS, sırasıyla para ve maliye politikalarının büyüme üzerindeki etkilerini tahmin etmek için kullanılmıştır. Para politikası açısından döviz kurunun ekonomik büyümeye zarar verdiğini, enflasyon ve para arzının ise ekonomik büyümeyi olumlu etkilediğini ortaya koyulmuştur. Maliye politikası açısından bakıldığında, devlet borçlarının ve devlet harcamalarının büyüme üzerindeki etkileri olumsuz, devlet gelirleri ise olumlu olduğu belirlenmiştir.              

Keywords

• Ekonomik Büyüme
• Maliye Politikası
• Para Politikası
• Enflasyon
• Devlet Gelir ve Harcamaları

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