Trade openness and its impact on the structure of the Iraqi trade balance an analytical study for the period (2013-2023)

Аннотация

International trade is a fundamental pillar of the global economy, and greatly affects the growth and development of countries. Due to this importance, many researchers have become increasingly interested in studying its variables and their effects on the balance of payments in particular and economic stability in particular. One of the important topics for international trade is the relationship between trade openness and the structure of the trade balance of countries, especially developing countries such as Iraq. The research is an attempt to study the impact of trade openness on the structure of the Iraqi trade balance during the period from 2013 to 2023, in detail using the analytical aspect of the data and stating the relationship between the different variables to reach an answer to a basic question of the research, which focuses on knowing what is the nature of the relationship between trade openness and the structure of the trade balance in Iraq? Does increasing trade openness lead to improving the trade balance or vice versa? What are the other factors that affect this relationship? The research reviewed the theoretical concepts related to trade openness and the trade balance, analyzed data specific to Iraq, presented the results of the analysis and made the necessary recommendations. Keywords: Trade openness, trade balance. exports of goods and services, including changes in the Introduction: Trade openness is one of the main factors industrial structure and the energy sector, which is the that affect the national economy of countries, as it main sector dominating the Iraqi economy. One of the reflects the ability of this country to deal with the global results of trade openness is increased reliance on economy by opening its markets to foreign products imported goods, which may lead to an imbalance in the and services, and in return providing its products balance of payments, if this is not accompanied by an abroad, relying on the structure of the balance of increase in Iraqi exports on the other hand, this payments that represents the balance between exports openness may provide Iraq with new opportunities for and imports, and mainly includes the current account, foreign investment And increasing economic diversity, which includes the trade balance, in addition to other which can contribute to reducing the trade deficit in the accounts such as the capital account and transfers. long term if these opportunities are managed properly. It is worth noting that trade openness in Iraq is a vital In this research, we will discuss the impact of trade issue in light of its geographical and economic position openness on the structure of the Iraqi trade balance by in the region, especially after the changes that the Iraqi analyzing how it affects exports and imports, in economy went through after 2003 and its move addition to its impact on the trade deficit, and analyzing towards trade liberalization. Given the effects of trade some indicators of trade openness in Iraq. openness on the structure of Iraq's trade balance, it has become an important topic that must be addressed, Section one: Research methodology due to its direct effects on the country's imports and International Journal of Management and Economics Fundamental 31 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) Importance of the research and adopting neutral policies between import and export and reducing the value of high customs tariffs in The importance of the research is evident from the addition to converting quantitative restrictions into trade openness of modern economies since the customs tariffs and moving towards a unified customs nineties of the last century, and its pivotal role in tariff system. (Abdulrahman Khder Aga, A., & Hussein, enhancing the economic growth of countries, including J. S., 2023, 341) believes that trade openness refers to Iraq, the subject of the research, as the research the process of reducing restrictions imposed on addresses the impact of foreign trade liberalization economic activity, which usually involves reducing processes on the status of the Iraqi trade balance. customs tariffs and/or removing non-tariff barriers to Research problem trade. Trade openness is defined, according to The Iraqi economy suffers from multiple challenges, (Ibrahim, N. A. S., 2022, 51.) as "the policy that leads to including fluctuating oil prices and recurring trade the abolition of discriminatory policies against exports, deficits. These challenges raise questions about the the adoption of neutral policies between exports and role of trade openness in strengthening the Iraqi imports, the reduction of the value of high customs economy or exacerbating its problems. What is the tariffs, in addition to converting quantitative nature of the relationship between trade openness and restrictions into customs tariffs and moving towards a the structure of the t