Exchange rate volatility and its impact on foreign direct investment in the Iraqi economy for the period (2004-2024)

This research experimentally studies the effects of some economic variables on foreign investment in Iraq. The data cover a period of time (2004-2024) and the econometric methodology was used. The variables were static at the first separation, which is why we used the ARDL methodology, and the results indicate that the determination coefficient R-Squared shows 0.846 of the changes occurring in the dependent variable (Foreign investment) FDI is due to the independent variables, and 15% falls within the error limits The F-Statistics reached (72.91981), which is significant at a level of less than 1%, which means the significance of the model used. The counteraction between the interest rate, inflation, exchange rate, debt service and foreign direct investment was tested. The statistical value (F-Bounds Test) reached (4 1.232718), which is smaller than its minimum and maximum value at a significance level of (10%), which means that there is no cointegration relationship between the variables The research found that there is a close relationship between the exchange rate and the price of oil, and volatility in exchange rates enhances investment uncertainty and raises the prices of raw materials used in manufacturing, which raises the value of local goods