The Impact of Economic Spending on Investment in Iraq for the Period 2005-2020

The Iraqi agricultural sector suffers from a package of challenges that require the state to intervene, direct and indirect, financial, informational and technological support, and direct more investments for the purpose of its development and facing those challenges. Public and private direct investments witnessed a significant decline due to a number of economic, social and political factors, which led to a deterioration in production and a decrease in its contribution to the gross domestic product. Iraq became dependent on global markets to provide its food security at very high rates, which constitutes a threat to national security. The problem of research is summarized by the fact that government and private agricultural investments are weak in Iraq, which negatively affected the overall agricultural development process, given that investment is the driving dynamic of economic and social activity. However, the volume of governmental and private investments is still very low, due to the fact that the agricultural environment repels investment due to a group of factors, including the destroyed infrastructure, administrative and financial corruption, the legal environment, agricultural land problems, environmental problems, desertification, water, poor performance of financial, monetary and commercial policies, stalled development, and so on. As a result, the deterioration of agricultural production, which led to Iraq losing billions of dollars annually to import food, and the accompanying import of damaged, adulterated or expired food. This research studies the impact of two important factors affecting the subject of investment in the agricultural sector, namely the volume of government investment spending and the amount of loans granted to farmers during the period 2005-2022.