Impact of the agricultural division on the Iraqi Balance of Payments using VAR analysis

Abstract

The research aims to identify the impact of the agricultural division on the Iraqi balance of payments (IBP) for the period of 2004-2020. There is an integration between the two variables: the added value of the Iraqi agricultural division and the current account of the Iraqi balance of payments during the study period. VAR analysis has been employed to explain how the agricultural division can affect the Iraqi balance of payments. The statistical model has been investigated using unit root test along with the causality test, which was conducted based on the ARDL methodology. The study results indicated that it was needed to provide all facilities and privileges to investors in the agricultural division to reach self-sufficiency in basic agricultural crops. It was proposed to increase government spending on the non-oil sectors in general and the agricultural division to diversify the sources of income for the Iraqi economy and reduce dependence on oil as a source of basic income