Document Type : Research Paper
Abstract
The banking system in most economies of the world has a privileged position in economic activity due to its direct connection with most branches of economic activities, as banks grant bank credit from loans and banking facilities provided to their customers in exchange for future payment in order to achieve their economic goals, so granting credit is directly linked to the economic conditions of the country, which is directly reflected on The credit function and banking stability, as the study aims to measure and analyze the impact of bank credit on the unemployment index in Iraq, considering bank credit as an independent variable and the unemployment index as a dependent variable within the period (2004-2019), and then the problem of the study for this relationship is based on the basic question that shows ( The extent of the impact of bank credit on the economic variable, the objective of the study), and the study hypothesis indicates that there is an inverse relationship between bank credit and unemployment, by applying the vector autoregressive model test (VAR). The explanatory (unemployment) showed an inverse and statistically insignificant effect.
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