A doctoral dissertation at the College of Administration and Economics discusses the impact of fiscal dominance and fiscal discipline on the optimal size of foreign reserves in Iraq.
The College of Administration and Economics at the University of Fallujah discussed a doctoral dissertation entitled "The Impact of Fiscal Dominance and Fiscal Discipline on the Optimal Size of Foreign Reserves in Iraq" on Sunday, June 28, 2026, in the Martyr Dr. Khalil Hall at 9:00 AM.
The dissertation, presented by student Firas Tahrir Mohammed under the supervision of Professor Dr. Khalid Rukan Awad, aimed to analyze the impact of fiscal dominance and fiscal discipline on the optimal size of foreign reserves in Iraq for the period 2004-2024 using the Autoregressive Distributed Lag (ARDL) model. The research also addressed a fundamental problem affecting the Iraqi economy: the growing financial dominance and lack of fiscal discipline, and their repercussions on the effectiveness of monetary policy in managing foreign reserves. This is particularly relevant given the significant structural imbalances resulting from the dominance of oil revenues as the primary source of funding for the general budget.
The thesis included several key conclusions, most notably: the research findings confirmed the adopted hypotheses. A long-term equilibrium relationship was found between the independent variables (indicators of financial dominance and fiscal discipline) and the dependent variables (indicators of the optimal size of foreign reserves) in the Iraqi economy during the period 2004-2024. The results of this relationship showed varying effects, including both positive (direct) and negative (inverse) impacts. Some indicators confirmed the research hypothesis, while others contradicted it but were still consistent with the Iraqi economy. This is attributed to changes in fiscal policy and the rentier nature of the Iraqi economy, which has made it vulnerable to external and internal shocks.
The discussion committee was chaired by Professor Abdulrahman Obaid Jumaa,
and included Professor Ahmed Wahib Hussein, Professor Muhannad Khalifa Obaid, Assistant Professor Ahmed Abbas Abdullah, and Assistant Professor Muhannad Khamis Abdul.
After a thorough discussion and hearing the student's defense of his dissertation, the committee decided to accept the dissertation and award the student a doctoral degree with a passing grade. Congratulations to the student and his supervisor!
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