The Impact of Some Monetary policy Tools on the Net Flow of Foreign direct investment in Iraq for the Period 2003 - 2019

Abstract

This paper has tried to study the impact of some monetary policy tools on the net flows of foreign direct investment in Iraq from the period 2003 to 2019, so it required us to address the different definitions of monetary policy and its objectives and tools used in influencing economic activity in general and then addressing for a descriptive analysis of the impact of some and the most important of these tools on the development of foreign direct investment flows, followed by a standard study in which we relied on the multiple linear regression model, which included a set of variables, which were represented in, money supply, exchange rate, interest rate and, inflation rate, and Through which it was concluded that there is a statistically significant negative relationship between Wide Money Supply with The Net Foreign direct investment, and that means the effectiveness of the tools in influencing The Net Foreign direct investment. Additionally, The Interest rate (R), which is among the instruments of monetary policy, is insignificant. This explains that there are other factors affecting FDI in addition to monetary policies.