Error correction model for estimating the relationship between GDP and inflation in the Iraqi economy (1990-2020)

Farhan, Aqeel Hameed; Abdullah, Murtadha Mansour

doi:10.22075/ijnaa.2021.5328

Error correction model for estimating the relationship between GDP and inflation in the Iraqi economy (1990-2020)

Document Type : Research Paper

Authors

Aqeel Hameed Farhan ¹

Murtadha Mansour Abdullah ²

¹ University of Diyala, College of Administration and Economics, Iraq.

² University of Wasit, College of Administration and Economics, Iraq.

10.22075/ijnaa.2021.5328

Abstract

The relationship between economic growth and inflation a concern for many countries in the developed and developing world, and erected in developed countries, a lot of research to laparoscopy relationship in order to overcome the problems that may be exposed to the States as a result of this association. The current research is an attempt to explore the trends in this relationship in Iraq in order to determine the ranges that can affect or be affected by growth as a result of inflation, period $(1990-2020)$ was adopted to range time frame in which you can determine the nature of the relationship between the two variables as well have been taking data at their nominal value as terms of GDP growth for the accurate diagnosis of the impact of inflation has been relying on time-series analysis to prove the direction of the relationship, and the paper confirmed the conclusion that there are two methods of fundamental bond that link inflation and economic growth in Iraq.

Keywords

inflation

variance

spending

gap

equilibrium

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