Measurement and Analysis of Economic Diversification in Iraq during the Period (2004-2016)

Abstract

The objective of this study was to analyze and measure the economic diversification in Iraq during the period 2004-2016. The economic diversification of GDP and foreign trade was measured using the herfindahl-hirschman coefficient. The results showed that the Iraqi economy achieved some of its objectives in the diversification of GDP during the period (2004-2016). The contribution of mining and quarries in the composition of GDP decreased from 80% in 2004 to 29.8% %) Year (2016). The contribution of non-oil sectors to GDP increased from 20% in 2004 to 71% in 2016. The value of herfindahl-hirschman index coefficient of GDP decreased from (0.7) year (2004) to (0.14) year (2016), indicating the high degree of economic diversification in productive activities..

Iraq's foreign trade suffers from a major structural imbalance. This imbalance in the control of crude oil as a raw material is more than (98%) of its exports.The value of Herfindal Diversification coefficient has increased from (0.994) year (2004) to (0.992) year (2016). This indicates that the growth in Iraqi exports reflects only an economic illusion resulting from the increases in oil prices mainly and the slight growth in production Oil and in-kind oil exports. In contrast, the value of Herfindal's imports decreased. The percentage decreased from (0.25) years (2004) gradually to (0.20) years (2016), and the period (2012-2016)