Analyzing the Impact of Economic Policies on the Investment Climate in the Iraqi Economy for the Period 2004–2022

The focus of the research is to analyze and measure the impact of economic policies, specifically fiscal policy (government spending and taxes) and monetary policy (exchange rate, interest rate, and money supply), on foreign direct investment (FDI) in Iraq from 2004 to 2022. The study uses econometric analysis through the Autoregressive Distributed Lag (ARDL) model. The research has obtained several results, and the most significant findings are as follows: Increasing the money supply has a positive effect on foreign direct investment. This indicates that when the money supply in the economy increases, it leads to a rise in FDI. Additionally, increasing public spending also has a positive impact on FDI. This can be attributed to the financing of infrastructure projects and structures that are difficult for the private sector to undertake. As a result, investors are more likely to expect higher returns on their investments. The results of the research show a statistically significant relationship between economic policies and foreign direct investment. Around 70% of the changes observed in FDI can be accounted for by the economic policies studied, while the remaining 30% is influenced by external variables not included in the model.