THE IMPACT OF THE EXCHANGE RATE ON THE IRAQI GROSS DOMESTIC PRODUCT IN THE SHORT AND LONG TERM ANALYTICAL STUDY OF THE PERIOD (1990-2018)
The research aimed to measure and analyze the exchange rate in Iraq and determine its impact on one of the macroeconomic indicators such as (gross domestic product) in the short and long term for the period (1990-2018), the standard model has been built according to semi-annual data using the (Eviews.12) program, and the research has found a common integration relationship between both the exchange rate and the variable (gross domestic product), and according to estimates of the relationship in the short term, it turned out that the relationship is direct between the exchange rate and GDP, but in the long-term relationship, it was also direct as for the recommendations, it is necessary to rely on the economic scheme on the exchange rate variable in drawing Economic policies, taking into account the flexibility of economic variables in the short and long term in order to make sound decisions in favor of the country in the long term, develop a strategy to diversify the structure of exports and imports by switching from the export of raw materials to the export of industrial and agricultural products, and here the development of production structures requires devaluation of the local currency against other currencies and the consequent increase in exports and reduce imports, and follow the method of managed floating of the local currency exchange rate, by subjecting it to market forces, allowing flexible intervention by the Monetary Authority in the market.
Exchange Rate, Gross Domestic Product