Measuring the Relationship Between the Exchange Rate and the Balance of Trade Using the VECM Error Correction Vector Model in Iraq for the Duration 2004_2023

Abstract

The research aims to examine the role of the exchange rate and its ability to influence the trade balance in the Iraqi economy during the period (2004-2023) as well as the use of the analytical curriculum descriptive of the variables adopted in research and using the standard programme Using a VECM model to analyze and measure variables and research data, the research reached a range of conclusions, including a long-term relationship between the exchange rate and the trade balance, and an influential and prominent role in the long-term balance of trade, but in the short term the relationship was relatively weak.