The Effect of Institutional Variables on Economic Growth in Iraq
DOI:
https://doi.org/10.33095/vydns246Keywords:
Regulatory Quality, Rule of law, Cost of business, Registering Property-Cost, Score Starting Business, the Iraqi economic.Abstract
The research aims to measure the impact of some institutional variables on the growth of the Iraqi economy during the period (2004-2019). The research problem focused on the following question: Iraq has many natural and human resources, but the country has not achieved growth consistent with the size of these resources. Did institutional factors play a role in disrupting the desired economic growth in Iraq? The research selected two governance variables and three doing business variables prepared by the World Bank. The research used the Vector Error Correction Model, after converting the data to semi-annual data, using the EViews 12 program to estimate the effect of the independent variables (Regulatory Quality, Rule of Law, Cost of business start-up procedures, Registering Property-Cost, and Score Starting Business) on dependent variable represented by the gross domestic product. The research found that the independent variables had a significant impact on the gross domestic product in the long term, and The CointEq1 coefficient indicates that the model tends to adjust slowly in the long term, which means that the Iraqi economy requires more time to return to the stable path. The results in the short run became insignificant and different from the results in the long run.
Downloads
References
Al-khatteeb, L., & Al Saadoon, O. (2015). Iraq’s rule of law. In Brookings. https://www.brookings.edu/opinions/iraqs-rule-of-law/
Alali, W. Y. (2010). Munich Personal RePEc Archive Impact of Institutions and Policy on Economic Growth: Empirical Evidence. 115610.
Avram, B., & Brad, S. (2017). Country Benchmarking for Setting Up a New Business. In Development, Growth and Finance of Organizations from an Eastern European Context (pp. 1–14). https://doi.org/10.1007/978-3-319-54454-0_1
AYTEKİN, M. (2022). Analysis of the Relationship Between Countries’ Governence Levels and Economic Growths. Anadolu University Journal of Faculty of Economics, 4(1), 1–19. https://doi.org/10.54737/aujfe.1053362
Bétila, R. R. (2021). The impact of Ease of Doing Business on economic growth: a dynamic panel analysis for African countries. In SN Business & Economics (Vol. 1, Issue 10). Springer International Publishing. https://doi.org/10.1007/s43546-021-00143-9
Brousseau, É., & Glachant, J. M. (2008). New institutional economics: A guidebook. In New Institutional Economics: A Guidebook. https://doi.org/10.1017/CBO9780511754043
Dani Rodrik. (2004). GROWTH STRATEGIES. 4(1), 1–58.
Dima, B., & Dima, S. M. (2018). Do Business Regulations Promote Growth in Low-income Countries? Economic Analysis, 51(3–4), 33–56.
https://doi.org/10.28934/ea.18.51.34.pp33-56
Dirir, S. A. (2023). The Effect of Institutional Quality on Economic Growth: Evidence from Tripartite Approaches in the Context of War-Torn Countries. Organizations and Markets in Emerging Economies, 14(3), 508–535. https://doi.org/10.15388/omee.2023.14.3
If Divanbeigi, R., & Ramalho, R. (2015). Business regulations and growth. World Bank Policy Research Working June.
Gasimov, I., Asgarzade, G., & Jabiyev, F. (2023). The impact of institutional quality on economic growth: Evidence from post-Soviet countries. Journal of International Studies, 16(1), 71–82. https://doi.org/10.14254/2071-8330.2023/16-1/5
HAIDAR, J. I. (2007). How Efficiently Is Capital Created? Evidence From Property Registration Reform In Egypt. 1, 1–4.
Klapper, L., & Love, I. (2016). The impact of business environment reforms on new registrations of limited liability companies. World Bank Economic Review, 30(2), 332–353. https://doi.org/10.1093/wber/lhu007
Kniepert, M. (2017). Bringing Institutions into Economics when Teaching Economics as a Minor Subject.
Munemo, J. (2014). Business start-up regulations and the complementarity between foreign and domestic investment. In Review of World Economics (Vol. 150, Issue 4, pp. 745–761). https://doi.org/10.1007/s10290-014-0189-2
Nguyen, C. P., Su, T. D., & Nguyen, T. V. H. (2018). Institutional Quality and Economic Growth: The Case of Emerging Economies. Theoretical Economics Letters, 08(11), 1943–1956. https://doi.org/10.4236/tel.2018.811127
Opuala-Charles, S., Victoria, O. I., & ... (2023). Ease of Doing Business and Economic Growth: A Panel Analysis of Selected Sub-Sahara African Countries. … Asian Journal of …, c, 141–158. https://www.cajitmf.centralasianstudies.org/index.php/CAJITMF/article/view/637%0Ahttps://www.cajitmf.centralasianstudies.org/index.php/CAJITMF/article/download/637/686
Parsa, M., & Datta, S. (2023). Institutional Quality and Economic Growth: A Dynamic Panel Data Analysis of MICs and HICs for 2000–2020. International Economic Journal, 37(4), 675–712. https://doi.org/10.1080/10168737.2023.2261012
Peace, M., & World, I. N. A. C. (2019). Global Peace Index: Measuring Peace in a Complex World. 1–99.
Razhkouskaya, K. (2024). Research Of The Impact Of The Quality Of Governance On Innovation And Economic Growth (pp. 220–224). https://doi.org/10.53486/cike2023.22
Rodrik, D. (2000). 6501868. February.
Rodrik, D. (2003). This is a working draft for eventual publication in the. World Development.
Salih, S. A., Qader, Z. H., & Ahmed, Y. A. (2022). The Reality of Governance Indicators and their Impact on Economic Growth in Iraq for the Period (1996 – 2020). Tanmiyat Al-Rafidain, 41(136), 347–372. https://doi.org/10.33899/tanra.2022.176222
Saltane, V. (2013). Getting Down to Business : Strengthening Economies through Business Registration Reforms. December, 1–6.
The Institute for Economics, & peace. (2023). Global Peace Index 2023 : Measuring Peace In a Complex World. 8. http://visionofhumanity.org/resources
The World Bank. (2023). Glossary _ DataBank.
USAID. (2005). Land Registration and Property Rights in Iraq. January, a.
World Bank. (2022). Country Policy and Instituitional Assessment (CPIA). 2(May), 2023.
World Bank. (2024). Home | Worldwide Governance Indicators. In World Bank. https://www.worldbank.org/en/publication/worldwide-governance-indicators
https://www.econlib.org/library/Topics
https://archive.doingbusiness.org/en/
https://borgenproject.org/fragility-and-rule-of-law-in-iraq/
https://subnational.doingbusiness.org/
www.govindicators.org
https://databank.worldbank.org/metadataglossary/world-development-indicators/series/:
Published
Issue
Section
License
Copyright (c) 2025 Journal of Economics and Administrative Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles submitted to the journal should not have been published before in their current or substantially similar form or be under consideration for publication with another journal. Please see JEAS originality guidelines for details. Use this in conjunction with the points below about references, before submission i.e. always attribute clearly using either indented text or quote marks as well as making use of the preferred Harvard style of formatting. Authors submitting articles for publication warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of the publisher unless otherwise agreed.
The editor may make use of Turnitin software for checking the originality of submissions received.
