Author(s): Yousif Abdullah Abed Al- Ani
The research aims to measure and analyze the relationship between economic growth and liquidity in the stock market in Iraq for the period (2005-2020) using the NARDL model, as well as knowing the impact of a liquidity shock on economic growth in Iraq. The research found that there is a direct, non-linear, long-term relationship between economic growth and liquidity in the stock market in Iraq, in addition to the fact that an increase in liquidity by (1%) will lead to an increase in economic growth by (0.596%), while a decrease in liquidity by (1%) will lead to a decrease in economic growth by (0.237%). Also, the occurrence of a liquidity shock (high liquidity rates) will lead to a decrease in the economic growth rate to reach its peak after one chapter of the shock, after which the economic growth rate begins to rise to reach its peak after four seasons of the shock, and remains at this level without returning to the state of equilibrium even after ten quarters of shock.