Impact of Non-Oil Export on Economic Growth in Iraq: An Application of the Bound Test Approach

Abstract

The crucial role of non-oil exports in promoting job creations, investments, productions and even infrastructure improvements is well established in the literature, in Iraq, despite the abundant of non-oil resources, non-oil exports accounts for less than 10 percent of total export receipts. This paper aims to examine the impact of non-oil exports on economic growth in Iraq by employing the ARDL model to investigate the long and short-run effects of non-oil exports on Iraq’s GDP. To do so, the annual data of GDP, non-oil exports of manufacture, food and agricultural products, and exchange rates have been collected from World Trade Organization and World Bank from (2003- 2020). The results reveal a significant impact of non-oil exports on economic growth in both the long and short run. It’s recommended for governments and policymakers that promoting non-oil exports and diversifying Iraq’s economy is paramount for faster economic growth, greater job creation, and less economic volatility.