Research on World Agricultural Economy

The Impact of Domestic Public Debt on Agricultural Government Investment and Economic Growth: Evidence from Iraqi between 2004 and 2022

Saad Abdalkareem Hammad

Department of Agricultural Economics, Agriculture College, University of Anbar, Ramadi 31001, Iraq

Noor Yousif Outhman

Jannat Iraq College, Ramadi 31001, Iraq

Mustafa Fadel Hamad

Department of Agricultural Economics, Agriculture College, University of Anbar, Ramadi 31001, Iraq

Ghazi Faisal

Jannat Iraq College, Ramadi 31001, Iraq

Thakir Hadi Abdullah

Ministry of Education, Ramadi 31001, Iraq

Ali Abd Ulkareem

The Local Union of Agricultural Cooperative Societies, Anbar, Ramadi 31001, Iraq.

DOI: https://doi.org/10.36956/rwae.v5i3.1124

Received: 9 June 2024; Received in revised form: 6 July 2024; Accepted: 10 July 2024; Published: 30 August 2024

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Abstract

The study aims to assess the impact of domestic public debt (DPD) on agricultural government investment (AGI) and economic growth in Iraq from 2004 to 2022 using the Autoregressive Distributed Lag (ARDL) model. The results demonstrate a significant cointegration relationship between DPD and economic growth, as indicated by the negative error correction coefficient (–0.0622), which is statistically significant at the 5% level. The study finds that DPD has a considerable positive effect on economic growth in the short term (2.5695) and long run (7.7793), with statistical significance at the 1% and 5% levels, respectively. Conversely, DPD did not have any discernible impact on AGI. The DPD and AGI were not cointegrated during the research period. Based on these findings, it is recommended that the Iraqi government formulate a clear strategy to manage DPD and establish precise criteria for the principles and conditions governing the use of domestic loans to optimize their effectiveness in agricultural economic development.

Keywords: ARDL; Agricultural growth; GDP

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