The impact of factors affecting economic growth fluctuations in oil-producing countries towards sustainable regional development (Case study: Iraq)

Hasanzadeh, Mohammad; Hashemi Dizaj, Abdulrahim; Naji Saleh, Salah

The impact of factors affecting economic growth fluctuations in oil-producing countries towards sustainable regional development (Case study: Iraq)

Document Type : Origional Article

Authors

Mohammad hasanzadeh ¹

Abdulrahim Hashemi dizaj ²

Salah Naji Saleh ³

¹ Department of Economics, Faculty of Social Sciences,Universityof Mohaghegh Ardabili , Ardabil, Iran.

² Department of Economics, Faculty of Social Sciences,University OFMohaghegh Ardabili , Ardabil, Iran

³ Department of Economics, Faculty of Social Sciences, Universityof Mohaghegh Ardabili , Ardabil, Iran.

Abstract

Background and Objective: Due to oil price fluctuations, oil exporting countries can be accompanied by income instability and economic growth. This study examines the effect of oil revenue fluctuations on economic growth fluctuations in Iraq and the moderating role of financial development. Accordingly, the main objective of the study is to answer the question of whether financial development can reduce economic growth fluctuations in the context of oil revenue fluctuations.

Methodology: The present study was conducted using the generalized moments method and time series data to examine the effect of oil revenue fluctuations on economic growth fluctuations and the moderating role of financial development. This method allows for the analysis and examination of the dynamics between macroeconomic variables.

Findings and Results: The findings show that fluctuations due to the abundance of oil revenues have a positive and significant effect on economic growth fluctuations. Also, financial development can play an effective moderating role in reducing the fluctuations in economic growth caused by fluctuations in oil revenues. Based on the findings, it can be concluded that further development of the financial system can reduce the negative effects of oil revenue fluctuations on economic growth and financial development can be considered as an effective tool in managing the effects of oil revenue fluctuations on economic growth in Iraq.

Keywords

Financial development

oil revenue fluctuations

economic growth fluctuations

Iraqi economy

Subjects

Urban & Regional Economic

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