<![CDATA[Background: The black economy undermines fiscal sustainability and policy effectiveness in developing nations. Specific Context: Iraq faces structural challenges including weak governance, political instability, and high unemployment, exacerbating informal economic activities. Gap: Existing Iraqi studies lack rigorous quantitative measurements using advanced models. Aim: This study measures Iraq's black economy (2004-2023) using the MIMIC model. Results: Corruption, tax burden, unemployment, and political crises significantly expand the informal economy, while improved governance reduces it. Novelty: First comprehensive application of MIMIC model with integrated causal-indicator framework for Iraq. Implications: Findings inform evidence-based policies for institutional reform, tax system simplification, and financial inclusion to mitigate informal economic activities.Highlight : MIMIC model identifies corruption, tax burden, unemployment, and political crises as primary drivers of Iraq's black economy (2004-2023). Black economy peaked during instability periods (2006-2007, 2014-2016, 2020); improved governance reduces informal activities. Governance reform, tax system simplification, and financial inclusion are key to integrating informal activities into formal economy. Keywords : Shadow Economy, MIMIC Model, Iraq, Governance, Tax Burden, Corruption]]>
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