Measuring and Analyzing the Impact of International Loans and Aid on National Income in Iraq for the Period (2000-2020)

Abstract

International aid and loans are important to developing countries due to their need for capital as a result of the shortage in their financial resources and suffering from a decline in their domestic savings, as developed countries with surplus capital provide aid to low-income developing countries for humanitarian or political purposes, as for loans. It is for the benefit of the lending and borrowing countries, as the lenders receive financial returns as a result of receiving the interest rate in exchange for lending capital to those countries, while the borrowers receive the loans in order to direct them to finance development and productive investments and achieve economic growth and development in them, or they may achieve negative results when directing them. Loans for consumption, wars, and treating emergency situations. The research aims to measure and analyze the impact of international aid and loans and other variables on economic growth, expressed in national income as one of the overall economic variables in Iraq. The problem of the research is summarized in the presence of a shortage of capital and local savings in Iraq, which necessitates resorting to loans. International aid fills this deficiency and achieves economic growth and development when it is directed to investments and financing development therein. The research is based on the hypothesis that international aid and loans have an impact on investments and financing local economies to achieve growth and development in Iraq, by explaining the theoretical framework of the standard model used in Research, describe the dependent and independent variables of the econometric model, and analyze the estimation results of the impact of international aid and loans on national income for the period (2000-2020) in Iraq by testing and verifying the research hypotheses and clarifying the relationship between the dependent variable and the independent variables.