Analysis of the phenomenon of double deficits in the structure of the Iraqi economy
Keywords:
the budget deficit, the trade deficit, the current balance deficit, double deficits, the Iraq economy, the macroeconomic variablesAbstract
The study sought to test the hypothesis that there is a causal relationship between the budget deficit and the current balance deficit in the Iraqi economy, and to achieve this, it aimed at analyzing the macroeconomic variables of the period (1990-2018) to identify the effects of the fiscal deficit on the level of economic activity as a result of the large limit of public revenues to the oil sector instead of looking for other sources of revenue, and the slowdown in the investment of fiscal surpluses during the days of the recovery of oil prices to diversify non-oil revenues, The role of the private sector in economic life has been neglected, as well as the decline in the contribution of manufacturing and the services sector to the GDP structure, while the results have found a unilateral impact from the net trade balance towards the budget deficit.
