The situation of fdi and economic growth in Iraqi Kurdistan region (During the period 2007-2012)

The Iraqi economy, in general, depends on oil, therefore, any fluctuations of the oil price in international oil market directly affect the economic situation and change of most of Iraq's economic activities. Accordingly, since Iraqi Kurdistan region is the federal region in Iraq, changes in the Iraqi economy are also affecting the regional economy, the increase of public income in the region affects the rise of national investment and foreign investment as well. Thus, a large part of the federal budget provide by the central government, and the small piece of public income comes from local sources, such as taxes and customs duties. Foreign direct investment inflows vary depending on the political developments in the region. Incoming foreign direct investment also helps increase economic growth. Also, the study found the significant relationship between FDI and economic growth in the region. Keywords: FDI, Iraqi Kurdistan region, GDP, and Economic Growth