Volume 22 , Issue 4 , December 2021 , Pages 651-658
Shanaz Hakim Mhamad 1 ; Dlovan Asaad Mohammed 1
1 University of Sulaimania-Faculty of Economics and Administration Department of Economics
The aim of this study is to illustrate the effect of interest rate on investment in iraq, which this relationship highly affects economic growth. Based on the fact that Iraq has enormouse opportunities in respect of natural capital and investment elements, interest tare is key to direct investors to use those opportunities. The paper also describes the Iraqi economy’s issue and chooses the policy needed to address it, using secondary data for the time span of 1980-2018 and applying Ordinary Least Square (OLS) method. Tthe results indicate that there is a negative relationship between interest rate and investment as investment decreases when interest rate increases, but are positively related to investment and GDP in Iraq.