Home About Login Current Archives Announcements Editorial Board
Submit Now For Authors Call for Submissions Statistics Contact
Home > Archives > Volume 20, No 8 (2022) > Article

DOI: 10.14704/nq.2022.20.8.NQ44562

Measuring the Effect of Government Borrowing Crowding Out of Private Credit in Iraq Using the ARDL Model

Ayar Salim Khammas, Dr. Nabil Mahdi Al-Janabi


The research aims at testing the hypothesis of the monetarists, i.e. the hypothesis of internal government borrowing crowding out of private credit in Iraq for the period of 2010-2021. The ARDL model and the limits test for co-integration were used. The results were not in favor of the crowding out hypothesis as the value of the internal government borrowing parameter was less than zero with a longterm and short-term relationship between the two variables.


internal government borrowing, private credit, the hypothesis of the monetarists, Iraqi economy

Full Text