The impact of fluctuations in oil prices on economic growth in Iraq For the period (1995-2013)

Abstract

AbstractCrude oil prices characterized by its fluctuation and lack of stability as a result of several factors; especially in the overall supply of crude oil side in the Iraqi economy as a rentier economies, the evolution of GDP depends on the production and export of crude oil and as a result of the decline in crude oil prices in global markets it will lead to a decline in economic growth rates. The record analysis showed the existence of long-term equilibrium relationship between GDP in Iraq and the exchange rate toward the dollar and the price of crude oil and the produced quantities of it. Hence, the aim of the research lies in showing the status of the oil sector in the Iraqi economy for the period 1995-2013, and its impact of rigidity in the productive apparatus, necessitating the need to establish complementary rings for manufacturing which relies on crude oil as the raw material in order to reduce the capacity of the rentier from one hand and diversify sources of income on the other hand. Particularly that oil is one of the depleted economic resources.