The relation between the governmental consumption expenditure and the economic growth in Iraq for the period 1981-2006
DOI:
https://doi.org/10.33095/jeas.v19i73.1077Keywords:
: Gross Domestic Product (GDP), Governmental Consumption Expenditure, Fixed Capital.Abstract
ABSTRACT
The research aim is to determine the relation between governmental consumption expenditure (GCE) & GDP in Iraq for the period 1981-2006.
The research has determined the scale of optimization for (GCE) & try to know the extent productivity of this expenditure and using the long run &short run model to test .The results clarify the following
1-The marginal productivity for the (GCE) is positive so it is productive.
2-The (GCE) in Iraq is too high because the marginal productivity for the expenditure less than 1.
3- The (GCE) percentage to GNP is 32% is up to national optimal scale which is 23%.
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