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International Journal of Research in Management

Vol. 6, Issue 1, Part D (2024)

The impact of government intervention on economic activity in Iraq according to the army curve model

Author(s):

Alabbas Fadhil Abdul Malek and Dr. Khalaf Mohammed Hamad

Abstract:

The study aims to identify government intervention in economic activity through spending according to the (Army Curve) in the Iraqi economy, by analyzing the study hypothesis.
Economic growth is one of the indicators of economic performance, because it reflects the economic strength of governments, as the latter seeks to achieve high rates of gross domestic product (GDP) with the aim of achieving economic well-being for members of society, noting that the increase in the value of locally produced goods and services depends on the technological progress that It is supported and complemented by the development of institutions and society, as this enhances and provides a suitable climate that helps work and innovation, in order to improve the means of production.
The study described and determined the common linear integration between the variables in the research sample, by working on applying the ADRL model to measure the impact of government intervention on Iraqi economic activity according to the Army Curve during a period extending from 2004 to 2022.
The study found that the policy of government intervention in economic activity reached a high degree, exceeding the permissible limit of (Army Curve), which assumes that governments interfere in their economic activities at a rate of (25%-35%), as the average Iraqi government intervention in economic activity reached (38.24). %) during the study period, and this led to a decline in economic growth rates on the one hand, and a weakening of the private sector on the other hand, as this percentage is considered a major intervention that works to remove the private sector from economic activity, and that most public expenditures during the years of study were unproductive. The study recommended compressing public spending on an annual basis (gradually), and working to restructure public expenditures by reducing the current spending ratio and raising the investment ratio, as it has a direct impact on the activity of the Iraqi economy, which is characterized by the unilateralism of the productive resource.
 

Pages: 360-369  |  81 Views  29 Downloads


International Journal of Research in Management
How to cite this article:
Alabbas Fadhil Abdul Malek and Dr. Khalaf Mohammed Hamad. The impact of government intervention on economic activity in Iraq according to the army curve model. Int. J. Res. Manage. 2024;6(1):360-369. DOI: 10.33545/26648792.2024.v6.i1d.167
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