The Relationship between Fiscal Policy and Human Development Analytical Studay Of Iraq Using The (ARDL)Model

Abstract

Fiscal policy is one of the important economic tools that affect economic development in general and human development in particular through its tools (public revenues, public expenditures, and the general budget).

It was hoped that the effects of fiscal policy during the study period (2004-2007) will positively reflect on human development indicators (health, education, income) by raising these indicators on the ground. After 2003, public revenues in Iraq increased due to increased revenues. However, despite this increase in public budgets, the actual impact on human development and its indicators was not equivalent to this increase in financial revenues. QR The value of the general budget allocations has not been matched by a real improvement in human development indicators resulting from this digital increase.

The standard aspect of using ARDL model was that there was a short-term positive relationship between government expenditure and public revenues as explanatory variables on the one hand, and the per capita GDP as an indicator of income on the other hand, and the absence of a long-term relationship between the two explanatory variables (government spending and public revenues) on one hand and between the per capita GDP.

The standard aspect also found a short-term relationship and no long-term relationship between the two explanatory variables (government spending and public revenues) on one hand and life expectancy at birth as an indicator of health on the other hand. The term between the two explanatory variables (government spending and public revenues) on the one hand and the literacy rate as an indicator of education on the other hand, which confirms the hypothesis of the research.