The Nature of the Relationship between Savings and Investment and Their Impact on Iraqi Economic Growth for the Period (1990-2015)

Abstract

Saving is one of the most important economic activities supporting the growth process in any economy. It is also one of the most prominent cultural activities in our world today. Most civilized countries do not accept any circulation of money without the mediation of banks and for various purposes, even simple trading operations. Therefore, the aim of the research is to analyze the theoretical and applied relationships between saving and investment as indicators of their subsequent effect on economic growth in Iraq for the period 1990-2015. The research starts from the assumption that investment in Iraq plays an effective role in economic growth in the event of increasing and stable rates of savings. The first part of this research is discussing the relationship between savings and investment which has important implications for increasing national savings to finance domestic investments needed to achieve economic growth. The second part deals with the general developments of saving, investment and economic growth in Iraq for the period (1990-2015), while the third part went to saving and investment trends and the economic growth in Iraq for the period (1990-2015) using graphs, while the fourth part focuses on the analysis of the standard analysis of the results of the relationship between savings and investment and their impact on economic growth in Iraq. The study reached a number of conclusions, most notably that the Iraqi economy is a one-sided economy depends primarily on one source of income which is the revenues of crude oil. The people, the government and the parliament must work in a team spirit to protect the national economy from waste and corruption and to build the foundations of a modern economic state based on the development of the competitive social market and the realization of the welfare state that provides the foundations of productive efficiency and the principles of justice in the distribution of incomes and wealth.