The impact of institutional corruption on the decline of the investment climate in Iraq For the period (2004-2020)

Abstract

Institutional corruption in its various economic, administrative and financial forms has an impact on the investment climate. This means that whenever corruption decreases, it makes the investment climate suitable for attracting foreign investments. Despite the guarantees and benefits offered to investors through the Investment Law (13) of 2006, which encourages attracting investments to Iraq, the rampant corruption in state institutions prevents them from attracting investors, including bureaucracy and bribery, which leads to a long period of completion of investment transactions. As well as the constraints of the investment climate components, including security, political and economic instability. Accordingly, foreign direct investment in Iraq is of great importance, but it collides with many obstacles, including institutional corruption in its various forms. Providing the elements of an investment climate has a major role in attracting foreign and local investment by reducing institutional corruption, as well as political and security stability, legal legislation, social justice, and improving infrastructure. Through the above, the privileges are encouraging to attract investors, as it is the way to advance the economic reality in Iraq, which works to attract foreign investments to invest in various economic projects, including production and service.