Estimating Factors Affecting Investment in the Iraqi Arable Land for the Period 1990-2013

Abstract

The research is focused on the investment in the Iraqi agricultural infrastructure. The problem to be studied in this research is that the agricultural sector in Iraq is strictly suffering from the lower productivity because of the limited investment, especially in the reclamation of more land areas through providing water for irrigation. Data for the period 1990-2014 are used in the analysis. They include the quantities of funds invested in the reclamation of land area, the numbers of hectares reclaimed, the gross domestic product and the annual agricultural production. A mathematical model is formulated by which the economic phenomena is analyzed by means of the method of Ordinary Least Square. GDP and the value of agricultural production were positively proportionate with the quantities of funds allocated to be invested in the reclamation of arable land and conformable to the rules of economic theory. When the value of agricultural production increase by 10%, the funds investment in the reclamation process will increase by 56.8 million dollar. However, there was no influence to the variable of the agricultural area reclaimed on the funds of investment in the reclamation process. It was negatively proportionate with the quantities of funds invested.

Keywords: Investment, Mathematical model, reclamation


Article Review Status: Published

Pages: 59-64 (Download PDF)

Creative Commons Licence
This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License