The Impact of Energy Consumption and Technology on the Sustainability of Economic Development in Iraq Counyry

Hassanzadeh, Mohammad; Hashemi Dizaj, Abdulrahim; Hashem Alvan Alhashemi, Montazer

The Impact of Energy Consumption and Technology on the Sustainability of Economic Development in Iraq Counyry

Document Type : Origional Article

Authors

Mohammad Hassanzadeh ¹

Abdulrahim Hashemi dizaj ²

Montazer Hashem Alvan Alhashemi ¹

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

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

Abstract

Background and Aim: Energy and technology, as two main factors of production, play a prominent role in improving and sustaining the economic growth of countries. Today, a larger part of economic growth is attributed to the efficient use of energy and technology than in the past. Awareness of the impact of technology and energy on economic growth can lead policymakers to pursue more optimal strategies to promote sustainable and inclusive economic growth and development, and in the long term, economic prosperity will affect the well-being of society. Given the importance of the research and the necessity of the present study, the aim of this study is to examine the impact of energy and technology consumption on the economic growth of Iraq.
Methodology: In the present study, the auto-explanatory model with extended lags (ARDL) was used to examine the impact of energy and technology consumption on the economic growth of Iraq during the period 2000 to 2022.
Findings and Conclusion: The results of this study show that the coefficient of the impact of energy consumption on economic growth in Iraq was 0.073 and the estimated T-statistic was 2.16. Given that the absolute value of the t-statistic was greater than the critical value at the 95% confidence level (1.96), it can be stated that energy consumption had a positive and significant effect on economic growth. Another result showed that the coefficient of influence of the technology index on economic growth in Iraq was 0.129 and the estimated T-statistic was 3.34. Given that the absolute value of the t-statistic was greater than the critical value at the 95% confidence level (1.96), it can be stated that the technology index had a positive and significant effect on economic growth. Also, the error correction coefficient was -0.576, which was statistically significant, indicating that if a shock were to occur to the economic growth rate in Iraq, 0.576 percent of the imbalance in the economic growth rate would be adjusted during each period and would approach its long-term trend.

Keywords

Energy consumption

technology

economic growth

Iraq

Subjects

Sustainable Regional Development

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