The migration of capital weakened the private sector

7/13/2016 0:00

BAGHDAD - Imad Emirate

Economic expert, Dr. Abdul Karim Hnjar said that the priorities of the states to go to search for types of foreign direct investment to support its local investment because of the gradual decline of savings, which Ails.

He Hnjar in an interview for »Sabah» that domestic investment consists of direct and indirect investment, indicating that direct investment is the acquisition of assets or economic activities or expansion of existing activities and control as long - term investments and constitute the largest share of their need for resources , huge, He pointed out that investment indirectly includes financial papers often Matkon short - term , which does not mean owned but the rights arising from them such as stocks, bonds, currencies and loans.

He pointed out that there are several types of investment , including domestic investment which is a label launches on investment , which is the source of its funding and managed locally no matter what if the public sector or private, economic theory distributes local income between consumption and savings and compactness, and in the circumstances the normal turn of savings for investment.

among Hnjar difficult to know the size of compactness, stressing that the distribution of income is determined by per capita income pattern, so The capital small size of the national money not be eligible investments necessary for the advancement of the national economy to the fact that large capital fled abroad because of force majeure.

he added that one of the main domestic investment determinants is the level of income, because the investment depends on savings , which only consists in a high - income, public sector will be its role in financing investment to fill the void after lack of incentive for the private sector , state here bear the burden of public interest investments from infrastructure that is not heading to it the private sector, as well as the state invests density capitalist sectors to enter the investment field of force through legislation and laws guaranteeing the rights of investors ' package as well as Matkdmh state services infrastructure.

He Hnjar that the total domestic investment is the construction of residential buildings and investment in fixed and other additions to the stock of business equipment, and constitute residential buildings a quarter of private sector investment and 20 percent are ranked in a major added to the stock, while the remaining are investments in facilities commercial.

Hnjar said that domestic investment is one of the foreign investment determinants as it gives signals to the foreign investor about the nature of the economic and political situation of the state Fmadelh Ahbr to the volume of domestic savings and gives a picture of the private investment climate of the gross domestic product, as well as a focus on government spending on infrastructure infrastructure.

Accordingly , The foreign investment has developed in various historical forms after World war II , with some countries, especially industrialized launched by public and private institutions to search for external markets for capital investment, as well as the search for markets believe in natural resources and raw to run its factories these investments have developed commercial format (Import and export) to establish departments and overseas branches of national institutions to the form of the acquisition of shares and bonds of the founding multinational companies based at the head of the state transit money to the mother of the host state investment.