Abstract
The research aims to shed light on the concept of foreign portfolio investment and the importance of this type of investment to attract foreign capital to stimulate the stock market, And to identify the most important advantages provided by foreign portfolio investment and the extent of its reflection on the financial depth index, And then measure and analyze the impact of portfolio foreign investment and some macroeconomic variables (inflation rate - the exchange rate - interest rate) on the financial depth index in the Iraqi stock market, The descriptive and analytical approach, and econometrics approach were used in building the model based on the Eviwes 10 program, As well as using the Autoregressive Distributed Lags (ARDL) model, The research problem centered on the following question: "What is the impact of portfolio foreign investment flows on the financial depth index in the Iraqi Stock Market". The study was applied to the Iraq Stock Exchange for an annual data series for the period (2010-2020), And as the results showed that the financial depth index was not significant in the used regression model, The study recommends working on the development of investment agencies to provide accurate information regarding available investment opportunities, As well as offering tax incentives to investors who hold shares for a certain period.
