ISSN: 2265-6294

Political stability, Corruption and its impact on the development of public debt and economic growth: a case study of Iraq for the period 2004-2020

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Niam A. Fawaz,Saad A. Hammad

Abstract

This paper presents a comprehensive view of the impact of political stability and corruption on the growth of public debt and economic growth in Iraq. It is known to all researchers and Those interested in the Iraqi economy, that Iraq suffers from a high rate of corruption and political instability, which negatively affects its public budget and its ability to collect the basis of taxes. In addition to the waste that corruption causes in public expenditure, this means that Iraq has to resort to public debt, especially external debt, and is subject to the conditions imposed by the lending institutions. In addition, corruption causes the inability to pay the financial dues he owes, which means that these debts will be rescheduled and the interest rates on them are doubled. Thus, more burdens and more public debt, which will reflect negatively on indicators of economic growth.

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