Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


The Effect of Implementing the Financial liberalization Policy On Economic Growth in Iraq: Analytical Study for the Period (2003-2015)

Author(s): Rajaa Khudhair Abbood Al- Rubaye

Increasing attention from the majority of countries in the world. It has been shown that the economy's ability to overcome negative economic conditions is linked to the size of reforms and policies. Financial liberalization in view of the contribution of the financial sector to economic efficiency and the liberalization of stability. Macroeconomics that include reform and price stability, fiscal reform, exchange and trade systems, restructuring of economic activities Dah allocation of capital resources and redirecting new savings and investment flows. Therefore, the efficient and efficient financial sector is the ideal channel for mobilizing domestic savings and mobilizing them in the form of credit and investment tools, and then directing it towards the more lucrative sectors and economic activities. This sector also contributes to attracting and attracting foreign investments in order to provide additional financial resources to support economic growth and development country.

Iraq is one of the countries that adopted the principle of financial liberalization after 2003 after the sector suffered from policies of marginalization and financial repression for many years. Its actions are reflected in the independence of the Central Bank and the freedom of interest rate and exchange rate as well as the currency auction and the laws of currency exchange and foreign exchange. But these measures were in stages in proportion to the capacity of the national economy and the circumstances surrounding it.

The research has proved by analyzing the indicators of financial liberalization based on data issued by the Central Bank of Iraq, that the procedures of financial liberalization have positive effects on economic growth, but that are in stages and commensurate with the specificity of the Iraqi economy, because the rush in those actions may generate negative effects reflected on the effectiveness Performance.

Get the App