The impact of unemployment on economic growth in Iraq (2003-2022)

One of the most important objectives of the financial, monetary and commercial economic policies of different countries is to achieve high economic growth rates and reduce unemployment rates. The human capital it possesses, and the failure of the labor market to absorb the stagnant force, which hinders the achievement of a continuous positive increase in the state's production, and thus affects the income and well-being of society members, and many economists, social, security and political effects. The scientific addition to the study is the selection of a relatively long and recent study period, which witnessed changes in the Iraqi economy after the war. A standard model using time series analysis to test the impact of unemployment on economic growth, and this study seeks to explore the impact of unemployment on economic growth in Iraq between 2003 and 2022. The importance of the study lies in clarifying one of the obstacles facing the Iraqi economy, and this obstacle is the problem of unemployment, which in turn is reflected and affects the economic growth of the Iraqi state. Iraq must overcome this obstacle or reduce it. The study aims to find out how unemployment can affect economic growth rates in Iraq by building a standard model, and whether the economic reform adopted by the state in the recent period has an impact on these rates, and then trying to propose a set of solutions. This would reduce unemployment in Iraq. This study will be based on the testing approach associated with the ARDL model proposed by Pesaran, Shin and Smith (2001) with the aim of analyzing the short- and long-run relationship between unemployment and GDP. The study concluded that there is a negative relationship between economic growth and unemployment, and found a positive relationship between capital, labor and GDP, according to the production function.