The impact of macroeconomic variables on the performance of the Iraqi stock market

Abstract

Recent stock market volatility is a result of economic problems that require the attention of policymakers and current scholars. Consequently, this article examines the effect of macroeconomic variables such as inflation, national income, employment rate, interest rate, and gross domestic product (GDP) growth on the Iraqi stock market. From 1988 through 2020, this study uses secondary data from the World Bank Database. In addition, the Dynamic Auto-regressive Distributed Lags (DARDL) method was used to examine the association between constructs. Inflation, national income, employment rate, interest rate, and GDP growth were found to have strong and positive correlations with the Iraqi stock market. This article assists regulators in creating policies regarding the sustainability of the stock market utilizing macroeconomic factors.