The Impact of the Exchange Rate on Foreign Direct Investment in the Iraqi Agricultural Sector for the Period 1990-2021

Abstract

The main objective of the research is to measure the impact of the exchange rate on foreign direct investment in Iraq, and to achieve this, it has been relying on time series data for foreign direct investment, the exchange rate, gross domestic product, inflation rate, and money supply for the period 1990-2021 by applying to the Iraqi economy as independent economic variables and their impact on The dependent variable is the exchange rate, and the unit root and stability test was carried out, and in order to detect the inactivity of the series variables, the developed Dickie-Fuller test was used, and the AIC standard was relied upon to test the slowing periods using the descriptive and quantitative method based on the Eviews-12 statistical program. The test proved that the variables of the study appeared static in the level and the first difference, which allows the use of the autoregressive model of the distributed time gap ARDL. And foreign direct investment in the agricultural sector and a positive relationship in the long and short term between GDP and foreign direct investment in the agricultural sector. As for the money supply in the broad sense, the relationship was inverse and significant in the long term only in the agricultural sector.