Author(s): Malik Abdul Raheem Mohammed, Mustafa Kamil Rasheed
Government consumer spending affects economic activity, as government consumer spending is one of the elements of the Aggregate injection, as it affects the macroeconomic variables under the action of the government spending multiplier. And then the GDP and national income. Therefore, fiscal policy has a significant impact on economic activity through government consumption spending in economies general, and developing economies particular. The problem of the study The Iraqi economy did not benefit from the advantages of government consumer spending despite its increase, but the domestic product and national income were declining, and economic activities were weak, with the growth of the oil sector without the rest of the production sectors. The aim of the study is to know the effect of government consumer spending in GDP and GNI. The hypothesis of the study is that the rise in government consumer spending improves the efficiency and activity of local markets, evolution of production relations, thus GDP and GNI improvement. Methodology study The time series data for the variables were used to (government consumer spending), (GDP), (GNI), in the Iraqi economy for the period (1990-2018), from international databases. The study concluded that was very high the impact of government consumer spending in GDP and GNI during the study period on the Iraqi economy. The study recommended the importance of benefiting from the characteristics of government consumer spending in injecting the Iraqi economy, from improving the business environment, evolution productivity, and then GDP & GNI enhancing.