Analysis the impact of bank credit on growth in the industrial sector in Iraq for the period 2008-2021

Abstract

This research aims to shed light on the reality of industrial production in Iraq for the period 2008-2021 and on the reality, structure of bank credit granted to the industrial sector (both private and government) in the same period. And then measuring and analyzing the effect of this credit in its two parts on the growth of industrial production for the same period. The research adopted the inductive analytical approach in analyzing the available data on bank credit granted to the industrial sector and the added value of industrial production in Iraq, and the econometric approach through the use of multiple linear regression to measure the impact of bank credit on industrial production in Iraq. The research has come to the conclusion that the percentages of bank credit granted to the Iraqi industrial sector suffer from fluctuation, imbalance, and scarcity, and that this credit does not affect the industrial production process, as it was found to be insignificant. When comparing the credit granted by private banks to the credit granted by government banks, it turns out that there is a defect in the credit structure. As the largest proportions of credit granted to industrialists come from government banks, despite their small numbers, and the lowest percentage comes from private banks, despite their large numbers. It was found that the credit of government banks is not significant and does not affect the industrial production process, while the credit of private banks, despite its scarcity, is significant and influential in the industrial production process