The impact of natural resource rents, geopolitical risk, and economic policy uncertainty on green growth in Iraq Country

Musa Abdullah, Mohammad; Hashemi Dizaj, Abdulrahim; Hassanzadeh, Mohammad

The impact of natural resource rents, geopolitical risk, and economic policy uncertainty on green growth in Iraq Country

Document Type : Origional Article

Authors

Mohammad Musa Abdullah ¹ ^¶

Abdulrahim Hashemi dizaj ²

Mohammad Hassanzadeh ³

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

² Associate Professor, Department of Economics, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran.

³ Professor، Department of Economics ، Faculty of Social Sciences، University of Mohaghegh Ardabili، Ardabil ،Iran

Abstract

Background and Objective: Natural resource rents can act as a dual factor; on the one hand, they provide financing for green projects, and on the other hand, they may lead to dependence on polluting industries and reduce incentives to invest in sustainable technologies. Geopolitical risk in resource-rich countries, especially in unstable regions, can lead to uncertainty in investments and a decrease in the willingness to develop green economic projects, which contributes to the weakening of sustainable growth. Uncertainty in economic policies, especially in the field of environmental regulations and taxation, can lead to reduced investor confidence and delays in the implementation of green initiatives, thus affecting sustainable economic growth.
Methodology: This study examines the effects of natural resource rents, geopolitical risk, and economic uncertainties, and other control variables such as financial development, foreign trade, foreign direct investment, and fixed capital formation on green economic growth in Iraq using an auto-explanatory model with wide lags (ARDL) and seasonal data over the period 1995-2022.
Results and Findings: The results of the model estimation show that natural resource rents, geopolitical risk, and economic policy uncertainty have a negative and significant effect on green economic growth in this have coutry. Also, financial development, foreign trade, foreign direct investment, and fixed capital formation have a positive and significant effect on green economic growth in Iraq country.

Keywords

Natural resource rents

geopolitical risk

economic policy uncertainty

green growth

Iraq

Subjects

Urban Environment

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