The Effect of Financial Depth Indicators on Economic Growth in Iraq for the Period 2004-2021: Econometric Study
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Abstract
This research aims to measure the extent of the impact of financial depth indicators on economic growth in Iraq from an Econometric perspective. The study adopts a descriptive methodology to cover the theoretical aspect and a quantitative standardized approach by applying the Autoregressive Distributed Lag (ARDL) model. Furthermore, quarterly data from 2004 to2021 are utilized to measure and analyze the relationship between financial depth indicators, represented by broad money supply to Gross Domestic Product (GDP) and the ratio of private sector credit to GDP, as independent variables, and economic growth, represented by GDP, as a dependent variable using EViews 12 software. The research findings in the long term indicate a negative impact of the M2/GDP indicator on GDP, while the impact of the private sector credit to GDP ratio is positive.
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