Master’s Thesis at the University of Basrah Examines the Impact of Fixed Capital

A master’s thesis at the College of Administration and Economics, University of Basrah, has examined the impact of fixed capital formation trends on Iraq’s Gross Domestic Product for the period 2004–2024, utilizing the Autoregressive Distributed Lag (ARDL) model and cointegration analysis.
The thesis, presented by student Hala Ali Jassim, aimed to analyze these trends, identify the key sectors contributing to them, and assess their economic impact.
The study covered the theoretical framework of fixed capital formation, analyzed its three primary trends, and measured its influence on the GDP.
The findings indicate an increase in capital formation—driven largely by commodity and service-related activities—with a concentration in the oil sector and social development, while the contributions from the industrial and agricultural sectors remain weak.
The thesis recommends increasing annual investment spending within productive sectors and incentivizing both domestic and foreign private investment.