The Role of Foreign Investment in the Development of Financial Markets (Iraq Stock Exchange for the period 2010 – 2017)

Abstract

The research aims to show the role of financial markets in providing the necessary funds for the development of the national economy by attracting foreign investment.   Financial markets have played a major role in the global economy. The importance of these markets in the role played by the financing of the local economy by working on the convergence between groups that suffer from the financial deficit, and those who have the financial surplus and seeks to employ this money.

The economic scene has witnessed many changes, including economic globalization, which has become a major challenge to the global economies, and the most important manifestations, the liberalization of financial markets and the increase of capital flows, so took many countries, including developing countries interested in attracting foreign investment and benefit from the movement of international capital, To the role of foreign capital in activating financial markets and their reflection in economic development.

The research was conducted in the Iraqi Stock Exchange for the period 2010-2017. The research reached a number of conclusions, the most prominent of which was that the decline in oil prices in 2014 affected the movement of foreign and domestic funds in the financial market. The research also reached a number of recommendations, the most important of which is to develop the legal environment that allows registered and new companies in the stock market to increase their capital in order to attract domestic and foreign investments.

Keywords : Foreign Investment, Development of Financial markets.