The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021

Saad Abd Ulkareem Hammad; Ali Darub Kassar Al Hiyali

doi:doi:10.11648/j.eco.20231203.11

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The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021

Saad Abd Ulkareem Hammad, Ali Darub Kassar Al Hiyali

Published in Economics (Volume 12, Issue 3)

Received: 27 June 2023 Accepted: 14 July 2023 Published: 21 July 2023

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Abstract

The research aims to measure the impact of private sector investment in the manufacturing industry on economic growth and unemployment in Iraq for the period 2004-2021. One of the most important reasons for conducting the research is to know the results that can be achieved by the participation of the private sector in the manufacturing industry, and were these results positive or negative? Therefore, decision-making will depend on these results. The use of econometric models and tests to clarify the effect, and the autoregressive distributed lag time (ARDL) model was applied. The results indicate that there is a co-integration relationship between private sector investment in the manufacturing industry ((PSI), gross domestic product (GDP) and unemployment (UN), Besides, there is a balancing relationship in the long run between the output of the manufacturing industry and GDP, and it has a significant effect at the probability level (1%), and it is associated with a direct relationship with it in the long term, an increase in the output of the manufacturing industry by 1% leads to an increase in the gross domestic product of about 0.210207, and it has been shown that there is a long-term equilibrium relationship between the variable output of the manufacturing industry and the unemployment rate, and this effect was significant at the probability level of 1%, but towards Reversible in the long run, as an increase in output in manufacturing industries by 1% leads to a decrease in the unemployment rate by (2.29383).

Published in	Economics (Volume 12, Issue 3)
DOI	10.11648/j.eco.20231203.11
Page(s)	83-92
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Private Investment, Manufacturing, Growth, Workforce

References

[1]	Ali, A. H. 2020. The problem of political instability in Iraq after 2003. Journal of Education College, Univ. of Wasit. 4 (41): 200-218.
[2]	Al-Husaini, Sh. R. J. 2022. The role of Financial Crowding Out in Private Investment Experiences of Selected Countries with Reference to Iraq. M. Sc. Thesis, Dept. of Economic., Coll. of Administration and Economics., Univ. of Karbala. pp. 110.
[3]	Al-Ikabi, A. L. 2017. A statistical and economic study of the production function of the manufacturing sector in Iraq for the period 1970-2011, the first international scientific conference, Kut University College, Issue 1.
[4]	Al-jarrah, M. A. (2011). Sources of Inflation in the Kingdom of Saudi Arabia (An Econometric Study Using Bound Tests Approach), Damascus University Journal of Economic and Legal Sciences, 27 (1): 133-153.
[5]	Al-Maktof, A. M. (2018). The role of the manufacturing industry in economic growth in Saudi Arabia, Journal of Administrative and Economic Research, 9 (1): 530-547.
[6]	Al-Rikabi, O. A. & F. K. Ali. 2022. The role of the manufacturing sector in the structural changes in the Iraqi economy for the period (2003-2018). Iraq Journal For Economic Sciences, 20 (75): 123-149.
[7]	Anber, Kh. G. 2013. Investment Expenditure and a Role in the Growth of the Output of Public Manufacturing Facilities in Iraq for the period 2000-2010. M. Sc. Thesis. Coll. of Administration and Economics., Univ. of Baghdad. pp. 210.
[8]	Central Bank of Iraq (2004-2021) General Directorate of Statistics and Research, Balance of Payments Statistics Division.
[9]	Cigdem, B. T, & Furkan. B. 2019. The Causality Effects of Manufacturing Sector on Some Macroeconomic Variables in Turkey. Procedia Computer Science. 158: 1109-1113.
[10]	International Labor Organization (2022) The State, the Private Sector, and Employment Policies in Iraq: Dimensions of the Problem and the Problematic Role 2003-2021.
[11]	Ismail, M. J. (2021). The impact of the manufacturing sector on economic growth in the Arab countries, Arab Monetary Fund, Economic Studies, No. 90.
[12]	Jarwan, S. A., Niam, A. F., & Saad, A. H. (2020). Estimating the Impact of Corruption on the Currency's Value: A Case Study of Iraq Using the ARDL Model. International Journal of Innovation, Creativity and Change, 13 (9): 404-415.
[13]	Marcel, B. and et. al. 2018. The impact of the manufacturing industry on the economic cycle of European union countries, Journal of Competitiveness, 10 (1): 23-39.
[14]	Mawlood, M. 2020. The Arab manufacturing industry and its contribution to macroeconomic indicators. Algerian journal of economic performance. 5 (1): 55-75.
[15]	Michael, O. 2022. The Impact of Manufacturing Sector on Economic-Growth in Nigeria. DOI: https://doi.org/10.21203/rs.3.rs-2203096/v1. p 1-16.
[16]	Ministry of Planning (2004-2021), Central Statistical Organization, National Accounts Unit.
[17]	Rahmani, Z. 2015. The Role of the Private Sector in Local Development, a Case Study in Algeria. M. Sc. Thesis, Coll. of Law and Political Science., Univ. of Alarabi bin muhaidi. pp. 175.

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APA Style

Saad Abd Ulkareem Hammad, Ali Darub Kassar Al Hiyali. (2023). The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics, 12(3), 83-92. https://doi.org/10.11648/j.eco.20231203.11

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ACS Style

Saad Abd Ulkareem Hammad; Ali Darub Kassar Al Hiyali. The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics. 2023, 12(3), 83-92. doi: 10.11648/j.eco.20231203.11

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AMA Style

Saad Abd Ulkareem Hammad, Ali Darub Kassar Al Hiyali. The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics. 2023;12(3):83-92. doi: 10.11648/j.eco.20231203.11

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@article{10.11648/j.eco.20231203.11,
  author = {Saad Abd Ulkareem Hammad and Ali Darub Kassar Al Hiyali},
  title = {The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021},
  journal = {Economics},
  volume = {12},
  number = {3},
  pages = {83-92},
  doi = {10.11648/j.eco.20231203.11},
  url = {https://doi.org/10.11648/j.eco.20231203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231203.11},
  abstract = {The research aims to measure the impact of private sector investment in the manufacturing industry on economic growth and unemployment in Iraq for the period 2004-2021. One of the most important reasons for conducting the research is to know the results that can be achieved by the participation of the private sector in the manufacturing industry, and were these results positive or negative? Therefore, decision-making will depend on these results. The use of econometric models and tests to clarify the effect, and the autoregressive distributed lag time (ARDL) model was applied. The results indicate that there is a co-integration relationship between private sector investment in the manufacturing industry ((PSI), gross domestic product (GDP) and unemployment (UN), Besides, there is a balancing relationship in the long run between the output of the manufacturing industry and GDP, and it has a significant effect at the probability level (1%), and it is associated with a direct relationship with it in the long term, an increase in the output of the manufacturing industry by 1% leads to an increase in the gross domestic product of about 0.210207, and it has been shown that there is a long-term equilibrium relationship between the variable output of the manufacturing industry and the unemployment rate, and this effect was significant at the probability level of 1%, but towards Reversible in the long run, as an increase in output in manufacturing industries by 1% leads to a decrease in the unemployment rate by (2.29383).},
 year = {2023}
}

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TY  - JOUR
T1  - The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021
AU  - Saad Abd Ulkareem Hammad
AU  - Ali Darub Kassar Al Hiyali
Y1  - 2023/07/21
PY  - 2023
N1  - https://doi.org/10.11648/j.eco.20231203.11
DO  - 10.11648/j.eco.20231203.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 83
EP  - 92
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231203.11
AB  - The research aims to measure the impact of private sector investment in the manufacturing industry on economic growth and unemployment in Iraq for the period 2004-2021. One of the most important reasons for conducting the research is to know the results that can be achieved by the participation of the private sector in the manufacturing industry, and were these results positive or negative? Therefore, decision-making will depend on these results. The use of econometric models and tests to clarify the effect, and the autoregressive distributed lag time (ARDL) model was applied. The results indicate that there is a co-integration relationship between private sector investment in the manufacturing industry ((PSI), gross domestic product (GDP) and unemployment (UN), Besides, there is a balancing relationship in the long run between the output of the manufacturing industry and GDP, and it has a significant effect at the probability level (1%), and it is associated with a direct relationship with it in the long term, an increase in the output of the manufacturing industry by 1% leads to an increase in the gross domestic product of about 0.210207, and it has been shown that there is a long-term equilibrium relationship between the variable output of the manufacturing industry and the unemployment rate, and this effect was significant at the probability level of 1%, but towards Reversible in the long run, as an increase in output in manufacturing industries by 1% leads to a decrease in the unemployment rate by (2.29383).
VL  - 12
IS  - 3
ER  -

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Author Information

Saad Abd Ulkareem Hammad

Department of Agricultural Economics College of Agriculture, University of Anbar, Ramadi, Iraq
Ali Darub Kassar Al Hiyali

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

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APA Style

Saad Abd Ulkareem Hammad, Ali Darub Kassar Al Hiyali. (2023). The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics, 12(3), 83-92. https://doi.org/10.11648/j.eco.20231203.11

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ACS Style

Saad Abd Ulkareem Hammad; Ali Darub Kassar Al Hiyali. The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics. 2023, 12(3), 83-92. doi: 10.11648/j.eco.20231203.11

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AMA Style

Saad Abd Ulkareem Hammad, Ali Darub Kassar Al Hiyali. The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021. Economics. 2023;12(3):83-92. doi: 10.11648/j.eco.20231203.11

Copy | Download

@article{10.11648/j.eco.20231203.11,
  author = {Saad Abd Ulkareem Hammad and Ali Darub Kassar Al Hiyali},
  title = {The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021},
  journal = {Economics},
  volume = {12},
  number = {3},
  pages = {83-92},
  doi = {10.11648/j.eco.20231203.11},
  url = {https://doi.org/10.11648/j.eco.20231203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231203.11},
  abstract = {The research aims to measure the impact of private sector investment in the manufacturing industry on economic growth and unemployment in Iraq for the period 2004-2021. One of the most important reasons for conducting the research is to know the results that can be achieved by the participation of the private sector in the manufacturing industry, and were these results positive or negative? Therefore, decision-making will depend on these results. The use of econometric models and tests to clarify the effect, and the autoregressive distributed lag time (ARDL) model was applied. The results indicate that there is a co-integration relationship between private sector investment in the manufacturing industry ((PSI), gross domestic product (GDP) and unemployment (UN), Besides, there is a balancing relationship in the long run between the output of the manufacturing industry and GDP, and it has a significant effect at the probability level (1%), and it is associated with a direct relationship with it in the long term, an increase in the output of the manufacturing industry by 1% leads to an increase in the gross domestic product of about 0.210207, and it has been shown that there is a long-term equilibrium relationship between the variable output of the manufacturing industry and the unemployment rate, and this effect was significant at the probability level of 1%, but towards Reversible in the long run, as an increase in output in manufacturing industries by 1% leads to a decrease in the unemployment rate by (2.29383).},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Private Sector Investment in the Manufacturing Industry on Growth and Unemployment in Iraq for the Period 2004-2021
AU  - Saad Abd Ulkareem Hammad
AU  - Ali Darub Kassar Al Hiyali
Y1  - 2023/07/21
PY  - 2023
N1  - https://doi.org/10.11648/j.eco.20231203.11
DO  - 10.11648/j.eco.20231203.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 83
EP  - 92
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231203.11
AB  - The research aims to measure the impact of private sector investment in the manufacturing industry on economic growth and unemployment in Iraq for the period 2004-2021. One of the most important reasons for conducting the research is to know the results that can be achieved by the participation of the private sector in the manufacturing industry, and were these results positive or negative? Therefore, decision-making will depend on these results. The use of econometric models and tests to clarify the effect, and the autoregressive distributed lag time (ARDL) model was applied. The results indicate that there is a co-integration relationship between private sector investment in the manufacturing industry ((PSI), gross domestic product (GDP) and unemployment (UN), Besides, there is a balancing relationship in the long run between the output of the manufacturing industry and GDP, and it has a significant effect at the probability level (1%), and it is associated with a direct relationship with it in the long term, an increase in the output of the manufacturing industry by 1% leads to an increase in the gross domestic product of about 0.210207, and it has been shown that there is a long-term equilibrium relationship between the variable output of the manufacturing industry and the unemployment rate, and this effect was significant at the probability level of 1%, but towards Reversible in the long run, as an increase in output in manufacturing industries by 1% leads to a decrease in the unemployment rate by (2.29383).
VL  - 12
IS  - 3
ER  -

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