Search Results for structural-imbalance

Abstract

This research seeks to address by analyzing the symmetrical imbalances between the economy and the status of the current account and what is implied by the significance of the relative importance of the current account in the balance of payments on the one hand within the framework of the internal / external overlap of developing economies in general and  Iraq , as a case study  to examine the extent of the reflection of the local economic structure on the characteristics of the current account

There are types of imbalances in the balance of payments related to the structural characteristics of the economy i, meaning that they represent a reflection of the imbalance in its production structures, and this imbalance, namely, in the current account takes a directional turn over a long time period related to the process of economic development and its success or failure in achieving the required structural changes

The research concluded that its hypothesis is correct as far as it is concerned with Iraq and that there is a symmetry between the internal/external structural imbalance that has deteriorated in the current account, especially the trade balance, and this imbalance has taken a hidden form as a surplus in the case of the rentier economy.  It concluded that economic administration has no choice but to restructure the Iraqi economy in favor of other production sectors, as well as financing and rehabilitating infrastructure projects, in addition to striving to attract foreign investment and working to expand production capacities and reduce dependence on oil as a main source of national income.

Abstract

This research aims to analyze the economic imbalances caused by local factors related to the nature of overall activity. These imbalances can be commodity-based, stemming from imbalances in aggregate supply and demand; financial, from imbalances in the general budget; or monetary, from imbalances between the supply and demand for money. Within this research framework, we can focus on the occurrence of these imbalances and their impact on deepening poverty, especially given that the Iraqi economy suffers from a set of structural imbalances: a rentier economy and dependence on crude oil, coupled with a clear weakness in the contribution of other productive sectors such as agriculture and industry. This has led to weak economic diversification and income inequality. The research is based on the hypothesis that there is a direct relationship between structural imbalances and high poverty rates in Iraq. To test this hypothesis, the descriptive and analytical methods were used, examining economic sectors and analyzing the evolution of poverty rates. The research concluded that dependence on a rentier economy, the inefficiency of fiscal policies and income redistribution, as well as developmental disparities between governorates, have all contributed to deepening poverty and fluctuating its rates. The results also showed that improvements in poverty levels were temporary and dependent on... The increase in oil revenues is a direct result of economic policies, and based on this, the research recommends diversifying income sources, strengthening the role of productive sectors, and improving the efficiency of economic and social policies to reduce structural imbalances and decrease poverty rates in Iraq.