Using simultaneous equations system for Iraqi economy (1988_2002)

Y. Yousef, Haithem; T. Abdel Krem, Khalid; F. Abdel Lateef, Hisham

	Using simultaneous equations system for Iraqi economy (1988_2002)
Diyala Journal For Pure Science
Article 1, Volume 6, Issue 2, 2010, Pages 417-452
Authors
Haithem y. yousef; Khalid T. Abdel krem; Hisham F. Abdel lateef
Abstract
The system simultaneous equations represents (Simultaneous equations system) and a causal relationship two-way first of the independent variable Independent variable)) to the dependent variable (Dependent variable) and the second of the dependent variable to the independent variable and the mutual influence makes the assumption that the independence of the random variable for the independent variable is incorrect and therefore the capabilities of the least squares routine be biased (Biased) and inconsistent (Inconsistence), therefore, the presence of the impact of two-way street in the function mean in itself that there should be equations or a set of equations to describe the relationship between two variables Valmngar's in the first equation may be found in the group of independent variables in the second equation and this leads a dual role, as is the impact be in the first equation and influential in the second equation. Where the method of least squares two-stage (Two stage least square) and the method of least squares with three stages (Three stage least square) in the estimate have been using the program of Econometrics (Gretl 1.8.0) to get the results. The conclusions reached by researchers are: - 1. The method of least squares two-stage (Two stage least square) is the best method of least squares with three stages (Three stage least square) to estimate the simultaneous equations system (Simultaneous equation system). 2. Component of GDP was significantly below the level of (0.1) in the function of private spending. 3. Investment component under a moral level (0.1,0.05,0.01) in the function of government spending in addition to that, the contribution to gross domestic product GDP (75.04%) to private spending any function that increase the gross domestic product (GDP) by (100%) leads to the increase in foreign spending by ( 75%) while the value of his contribution (60.16%) for the function of investment and this means that the increase in gross domestic product (GDP) by (100%) leads to increased investment by (60.16%) The function of government spending has reached its contribution (39.71%) which are to increase GDP (GDP) by (100%) leads to increased government spending by (39.71%). While researchers recommend to: - 1. The need for economic efficiency at the enterprise level and all sectors of the economy through optimal use of factors of production to raise the rates of gross domestic product (GDP). 2. The need to encourage households to reduce the function of private spending and focus on saving (investment) to raise the rates of GDP 3. The need to follow the government's economic policy concerned with reducing rates of government spending in the field of consumer and make up for it on the field of investment to increase the rates of gross domestic product (GDP).
Keywords
simultaneous equations system for Iraqi economy

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