Impact of Foreign Direct Investment Flows on Economic Growth in the Kurdistan Region of Iraq For the period (2006-2016)

Abstract

The shortage of financial resources is one of the most important economic problems experienced by the Kurdistan Region, especially in light of the crises and low oil prices, as well as the lack of technical and technical staff advanced, and therefore foreign direct investment is necessary to finance the requirements of economic growth, so the study aimed at analyzing the reality of foreign direct investment and knowledge the extent of its impact on economic growth in the Kurdistan region of Iraq for the period (2006-2016), through the analytical descriptive approach, as well as a quantitative standard approach was applied as co-integration testing using a Autoregressive Distributed Lag Model Autoregressive Distributed Lag Model (ARDL), The study found that there was a clear impact of the political, security and economic crises inside and outside the country on the flow of FDI, and showed the results of statistical and standard tests have a positive impact of FDI in the economic growth in the Kurdistan Region of Iraq, The study led to the need for policies that would guide FDI towards productive sectors in order to promote economic growth, work hard to reduce administrative and bureaucratic restrictions, and oblige foreign investors to introduce advanced technology, train local cadres and manpower, Foreign companies as well as absorption of part of the labor force.