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The effects of fiscal and monetary policies on stimulating private enterprises in Iraq
(İstanbul Gedik Üniversitesi, 2021) Wadi, Sura Khalid; Güvel, Enver Alper
Iraq is one of the developing countries that started new economic reform after 2003. The important part of this reform was stimulating the private enterprises in Iraq. This study investigates the effects of the fiscal and monetary policies on stimulating the private sector in Iraq. The importance of the study is to investigate the effectiveness of both fiscal and monetary policies in stimulate the private sector can achieve their goals. The results of this study show that the monetary policy has positive and significant impact on private sector. The results show that the fiscal policy in Iraq has negative and insignificant impact on the private sector. Therefore, the first hypothesis of this study is confirmed, while the second hypothesis of this study is not confirmed. The results indicate that trade and the investment policies in Iraq have negative impact on the private sector. However, their impact are not significant. Based on these results, it is suggested that the Iraqi government adopt better economic policies to stimulate the private businesses.