ANALYSIS THE RELATION BETWEEN THE GOVERNMENTAL CONSUMPTION EXPENDITURE AND THE ECONOMIC GROWTH IN IRAQ FOR THE PERIOD 1981-2006

Abstract

The research aim is to determine the relation between governmental consumption expenditure (GCE) & GDP in Iraq for the period 1981-2006.

The researches has determined the scale of optimization for GCE and try to know the extent productivity of this expenditure and using the long run &short run model to test .The results clarify the following:

1-The marginal productivity for the GCE is positive so it is productive.

2-The GCE in Iraq is too high because the marginal productivity for the expenditure less than 1.

3- The GCE percentage to GNP is 32% is up to national optimal scale which is 23%.