Measuring the impact of the investment climate on the cost of investment projects using the ARDL model in Iraq

Abstract

The concept of investment climate is a modern concept that includes a group of factors that affect the investment process, and the importance of investment in the Iraqi economy being a rentier economy that depends entirely on its oil exports. It must be preceded by the creation of a suitable and attractive environment for investment by improving the investment climate. Since the investment decision depends in large part on the total costs of the project, it is necessary to know how the investment climate affects these costs. Accordingly, the study seeks to clarify the effects left by the investment climate factors and thus their impact on the investment decision. The letter concluded that the political, economic, administrative and financial instability are major obstacles to the investment climate in Iraq, and the most important of its recommendations is an attempt to improve the infrastructure of the Iraqi economy, which in turn stimulates the private sector, in addition to the need to formulate the investment law by economists first and coordinate with national strategic policies and study other laws related to investment.