The Impact of Trade Liberalization and Inflation on The Accumulation of Agricultural Fixed Capital in Iraq, 2004-2021

This paper aimed to estimate and evaluate the impact of trade liberalization and inflation on agricultural fixed capital accumulation in Iraq for the period 2004-2021. The self-regression model for distributed deceleration (ARDL) was used to evaluate the effects and extent of the independent trade liberalization and inflation variables on the dependent agricultural fixed capital formation variable. This research aimed to estimate and measure the impact of inflation on the composition of agricultural fixed capital, and determine the relationship between them using analytical methods. The agricultural sector suffers from weak capital growth, fluctuating investments and low contribution to GDP. In view of the importance of agricultural capital to the development of local production and the provision of food commodities and agricultural and animal products, it is important to examine the economic variables affecting the accumulation of such capital. Despite Iraq's possession of financial capabilities, resources and institutions, the accumulation of Ray agricultural money still low. The results show a common complementary relationship between trade liberalization and agricultural fixed capital accumulation and the existence of a long-term positive moral relationship between them as well as an inverse relationship between inflation and the accumulation of agricultural fixed capital. The paper recommends the need for commercial liberalization, which contributes to facilitating the absorption of modern agricultural technology, importing raw materials such as fertilizers, seeds, equipment, and machinery to promote local production and profits in a way that supports agricultural fixed capital accumulation. It also recommends maintaining a low inflation rate to enhance producers' confidence in the investment environment and long-term returns. This will boost savings and investment in the agricultural sector, enhance agricultural capital growth, and achieve high rates of domestic food security