The effect of fixed capital formation rate on gross domestic product in Iraq
The total fixed capital formation is one of the main and influential determinants of production function through its impact on production costs, competitiveness, and profits. The Iraqi gross domestic product depends on one sector (the oil sector) in financing the government budget, which may lead to...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2024-10-01
|
| Series: | Public and Municipal Finance |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20932/PMF_2024_02_Dawood.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849721993144827904 |
|---|---|
| author | Sameer Siham Dawood Bilal Kadhim Haidar Mohammad Ghazi Nussaif Jasim |
| author_facet | Sameer Siham Dawood Bilal Kadhim Haidar Mohammad Ghazi Nussaif Jasim |
| author_sort | Sameer Siham Dawood |
| collection | DOAJ |
| description | The total fixed capital formation is one of the main and influential determinants of production function through its impact on production costs, competitiveness, and profits. The Iraqi gross domestic product depends on one sector (the oil sector) in financing the government budget, which may lead to crises in case of oil price collapse. Therefore, the study aims to clarify the imbalance in the production function and the real output of the Iraqi economy and to indicate the role of the total fixed capital formation in this imbalance. The econometric methods were used to measure the degree of influence of the total fixed capital formation (independent variable) on the gross domestic product (dependent variable) from 2004 to 2020. The results showed a robust relationship between fixed capital formation and gross domestic product, where the independent variable affects the dependent variable by 4.5%, while the oil sector dominated the total value added by its acquisition of the total fixed capital formation by 47.45%, and the productive sectors of agriculture and industry achieved value added of 3.8%. The study concluded that the distribution of total capital formation by sector has an impact on the gross domestic product. Therefore, it is necessary to distribute the total fixed capital formation to the productive and production-supporting sectors to achieve economic growth and diversify the structure of the gross domestic product. |
| format | Article |
| id | doaj-art-460bfa6546074d9d8c656b6dae8f8e91 |
| institution | DOAJ |
| issn | 2222-1867 2222-1875 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Public and Municipal Finance |
| spelling | doaj-art-460bfa6546074d9d8c656b6dae8f8e912025-08-20T03:11:29ZengLLC "CPC "Business Perspectives"Public and Municipal Finance2222-18672222-18752024-10-01132566710.21511/pmf.13(2).2024.0620932The effect of fixed capital formation rate on gross domestic product in IraqSameer Siham Dawood0https://orcid.org/0000-0003-4152-0152Bilal Kadhim Haidar1Mohammad Ghazi Nussaif Jasim2Ph.D., Assistant Professor, Economic Department, College of Administration and Economics, University of Baghdad, IraqPh.D., Lecturer, Economic Department, College of Administration and Economics, University of Baghdad, IraqPh.D., Lecturer, Economic Department, College of Administration and Economics, University of Mustansiriyah, IraqThe total fixed capital formation is one of the main and influential determinants of production function through its impact on production costs, competitiveness, and profits. The Iraqi gross domestic product depends on one sector (the oil sector) in financing the government budget, which may lead to crises in case of oil price collapse. Therefore, the study aims to clarify the imbalance in the production function and the real output of the Iraqi economy and to indicate the role of the total fixed capital formation in this imbalance. The econometric methods were used to measure the degree of influence of the total fixed capital formation (independent variable) on the gross domestic product (dependent variable) from 2004 to 2020. The results showed a robust relationship between fixed capital formation and gross domestic product, where the independent variable affects the dependent variable by 4.5%, while the oil sector dominated the total value added by its acquisition of the total fixed capital formation by 47.45%, and the productive sectors of agriculture and industry achieved value added of 3.8%. The study concluded that the distribution of total capital formation by sector has an impact on the gross domestic product. Therefore, it is necessary to distribute the total fixed capital formation to the productive and production-supporting sectors to achieve economic growth and diversify the structure of the gross domestic product.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20932/PMF_2024_02_Dawood.pdfeconomic growthfixed investmentgovernment expendituremacroeconomic impactproductionpublic sector accounting |
| spellingShingle | Sameer Siham Dawood Bilal Kadhim Haidar Mohammad Ghazi Nussaif Jasim The effect of fixed capital formation rate on gross domestic product in Iraq Public and Municipal Finance economic growth fixed investment government expenditure macroeconomic impact production public sector accounting |
| title | The effect of fixed capital formation rate on gross domestic product in Iraq |
| title_full | The effect of fixed capital formation rate on gross domestic product in Iraq |
| title_fullStr | The effect of fixed capital formation rate on gross domestic product in Iraq |
| title_full_unstemmed | The effect of fixed capital formation rate on gross domestic product in Iraq |
| title_short | The effect of fixed capital formation rate on gross domestic product in Iraq |
| title_sort | effect of fixed capital formation rate on gross domestic product in iraq |
| topic | economic growth fixed investment government expenditure macroeconomic impact production public sector accounting |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20932/PMF_2024_02_Dawood.pdf |
| work_keys_str_mv | AT sameersihamdawood theeffectoffixedcapitalformationrateongrossdomesticproductiniraq AT bilalkadhimhaidar theeffectoffixedcapitalformationrateongrossdomesticproductiniraq AT mohammadghazinussaifjasim theeffectoffixedcapitalformationrateongrossdomesticproductiniraq AT sameersihamdawood effectoffixedcapitalformationrateongrossdomesticproductiniraq AT bilalkadhimhaidar effectoffixedcapitalformationrateongrossdomesticproductiniraq AT mohammadghazinussaifjasim effectoffixedcapitalformationrateongrossdomesticproductiniraq |