Journal of Sustainable Urban & Regional Development Studies (JSURDS)
Quarterly

Investigating the Nonlinear Effects of Globalization on Labor Productivity in Iraq country

Document Type : Origional Article

Authors

Abdulrahim Hashemi dizaj 1
Mostafa Mohammad Obaid 2

1 Department of Economics, Faculty of Social Sciences,University OFMohaghegh Ardabili , Ardabil, Iran

2 Department of Economics, Faculty of Social Sciences, University of Mohaghegh Ardabili , Ardabil, Iran

Abstract
Background and Objective: In recent years, with the increasing discussions about globalization and the diversity of perspectives on it, examining the impact of globalization on macroeconomic variables, including productivity, has become an attractive topic in the academic literature. Studying and examining the effects of globalization on labor productivity is of great importance for several reasons, as it provides insights into how global economic integration affects labor efficiency, economic growth, and overall development. Studying the effects of globalization on labor productivity growth is essential for understanding economic dynamics, informing policies, increasing competitiveness, and preparing the workforce for future challenges. This knowledge enables countries and businesses to reap the benefits of globalization while addressing its challenges, ultimately contributing to sustainable economic growth and improving living standards. Accordingly, the aim of this study is to investigate the nonlinear effects of globalization on labor productivity in Iraq.
Methodology: In order to investigate the nonlinear effects of globalization on labor productivity in Iraq during the period 1995-2022, the nonlinear extensive lags (NARDL) model was used in this study. Also, the symmetry or asymmetry of the effects of globalization on labor productivity in Iraq was examined.
Findings and Conclusion: The findings of this study showed that the positive impulses of globalization had positive and significant effects on labor productivity. However, the effects of negative impulses of globalization on labor productivity were not significant. Considering these effects, it can be concluded that the more Iraq is exposed to economic globalization, the more it will benefit from its benefits. Given the positive and significant impact of the human development index on labor productivity, it can be suggested that Iraqi politicians make the right and long-term decisions to strengthen this index by improving educational conditions at different levels of education, improving health and treatment conditions, and life expectancy, so that in addition to benefiting from the indirect effects of this index, the level of labor productivity as one of the main keys to sustainable development is strengthened and made more sustainable. Based on the results, it is necessary to emphasize that human development and its improvement cannot lead to improved productivity growth without interruption, and its effects will gradually emerge over time. Also, based on the negative and significant effects of the inflation rate on labor productivity, the Central Bank of Iraq should make more efforts and efforts to control the volume of liquidity as the main cause of inflation in the economies of countries. Finally, considering the positive and significant impact of foreign direct investment on labor productivity, the Iraqi government can take a major step towards improving labor productivity by reducing domestic risks and increasing its political and economic security by increasing foreign investment, in addition to taking advantage of its other positive effects.

Keywords

globalization
productivity
labor
Iraq

Subjects

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  • Receive Date 09 October 2024
  • Revise Date 08 November 2024
  • Accept Date 11 February 2025
  • First Publish Date 13 February 2025
  • Publish Date 22 November 2025

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