Search Results for oil-revenues
Abstract
This research deals with the complex relationship between fiscal policy tools and exchange rate policy in Iraq. Where the exchange rate is one of the important economic indicators that reflect the state of economic stability of the state, and is greatly affected by changes in fiscal policy, especially in light of excessive dependence on oil revenues and fluctuations in global prices, hence the problem of the study stems from the challenges faced by the Iraqi economy due to its great dependence on oil revenues, which leads to fluctuations in the exchange rate The study seeks to answer how different fiscal policy tools affect exchange rate policy. The study found that public revenues, which rely heavily on oil, play a crucial role in stabilizing the exchange rate. Public spending, whether current or investment, also affects the value of the local currency, as the rise in current spending can lead to inflationary pressures, which increases exchange rate fluctuations, and the impact of both the public budget and public debt on exchange rate policy, as it appears that the fiscal deficit and high public debt can lead to Pressure on the local currency. The study emphasizes the importance of economic diversification and increasing non-oil revenues to ensure the stability of the exchange rate.
Abstract
The research aims to clarify and define sovereign wealth funds and their importance in preserving oil wealth revenues for the future while ensuring their equitable distribution for the future of future generations, as well as proposing an objective vision or drawing an integrated picture of the possibility of creating a sovereign fund for Iraq by preparing the general structure of the fund with the creation mechanism for that All of the justifications for the creation of an Iraqi sovereign fund and its importance and the objectives of the Iraqi sovereign fund were mentioned, as well as the possibilities of employing sovereign wealth funds in managing the financial crisis in Iraq. Economic represented by restructuring public spending in favor of investment spending, activating the role of non-oil revenues in financing the budget and addressing corruption, which is a structural factor that must be addressed.
Abstract
This research aims to analyze the relationship between fiscal policy and poverty rates in Iraq during the period 2018–2023 by examining the structure of the public budget, including revenue and expenditure distribution (both operational and investment). The findings indicate that the rise in oil revenues did not effectively contribute to poverty reduction due to weak redistribution policies and reliance on temporary solutions such as public employment and the ration card system. Official poverty indicators based on socio-economic surveys reveal significant regional disparities, underscoring the limited impact of government measures. The study concludes that the lack of economic diversification and the dominance of a rentier structure have exacerbated poverty and recommends the implementation of more inclusive and sustainable development policies to address its root causes.
Abstract
This study examined the impact of a rentier economy on the independence of monetary policy in Iraq after 2004, considering Iraq as a rentier state that relies heavily on oil revenues. The study included an analysis of the relationship between the rentier economy and monetary policy, as well as the effects of the rentier economy on the independence of monetary policy. It found that dependence on oil to finance public expenditures leads to a reduction in monetary policy independence.
The results showed that the rentier economy has a significant impact on the independence of monetary policy in Iraq, and that there is a pressing need to diversify the economy and reduce reliance on oil in order to mitigate the risks arising from fluctuations in oil prices, which affect state revenues. Consequently, when the government faces a deficit, it compels the central bank to adopt an expansionary monetary policy to finance this deficit, which in turn undermines monetary policy independence.
The study reached a number of conclusions and recommendations that the researcher believes are aimed at strengthening the independence of monetary policy in rentier states.
Abstract
Given the growing public debt burden and the volatility of global oil prices — the primary source of budget revenues — this study examines the economic impact of public debt on sustainable development in Iraq from 1990 to 2022. Using modern econometric models and quarterly time series data, the research analyzes the relationship between domestic and external public debt, economic growth, and sustainable development.
The study aims to identify the short- and long-term effects of public debt on growth and sustainability and clarify how oil price volatility affects this relationship. The results indicate that domestic debt has a less negative impact than external debt. While external debt supports expenditures in the short term, it increases long-term risks due to repayment obligations. The results also indicate weak links between high debt and sustainable development outcomes, reflecting the inefficient use of borrowed resources. Heavy reliance on oil revenues exacerbates the economy's vulnerability to external shocks. The study concluded with a set of recommendations: adopt wise debt management strategies; direct borrowing toward productive and developmental sectors; enhance transparency and institutional efficiency; diversify the economy to reduce dependence on oil; and cooperate with international financial institutions to design debt sustainability policies consistent with the Sustainable Development Goals.
Abstract
The research aims to measure the impact of public budget indicators and institutional quality (the quality of governing institutions in the economy) in reducing public debt for a selected group of Arab countries with renter economies for the period (2002-2023). Two standard models have been built to achieve this goal: The first model focused on measuring the impact of the general budget through its basic indicators represented by public spending and public revenues expressed in tax revenues, with the introduction of the oil price variable as a control variable due to its fundamental importance in explaining the dynamics of public debt in oil economies. The second model focused on measuring the impact of the six institutional quality indicators issued by the World Bank (control of corruption, political stability, government effectiveness, rule of law, voice and issue, and regulatory quality) on public debt. Using static analysis of longitudinal data models represented by its three models (pooled regression model, fixed effects model, and random effects model) for eight Arab oil countries, the research reached a set of results: For general budget indicators, the results showed that reducing public spending can contribute to reducing public debt, while there was no significant effect of oil revenues. While for oil prices, they had an impact in reducing public debt. As for institutional quality indicators, the results showed the impact of (political stability, government effectiveness, voice and issue) on reducing public debt, while the results showed that (control of corruption, rule of law, and regulatory quality) contribute to the accumulation of public debt. Therefore, the results of this research confirm the importance of the financial budget and institutional quality in reducing public debt and its sustainability in the long run.
Abstract
The importance of the subject in estimating the impact of sudden oil shocks over decades since the early seventies of the twentieth century until now was the motive in choosing it, and naturally when oil prices are low, this will be reflected in the government's financial decisions. The research problem revolves around dependence on oil revenues mainly and the weakness of other sectors such as agriculture in financing the government budget in Saudi Arabia, which raises the following question: It is to what extent these countries can absorb those oil shocks and contain them through an appropriate fiscal policy. The research relied on the hypothesis that tracking the paths of oil shocks had clear repercussions in government budget decisions, which prompted Saudi Arabia to follow appropriate financial methods and means to contain the government budget deficit. One of the main objectives of the research is to show the risks of oil shocks on financial conditions in creating surpluses or deficits in these financial conditions for government budgets, and the research relied on the analytical method to prove its hypothesis to show the trends of these shocks. The research reached a number of results, including that oil is and is still one of the most important drivers of political and economic developments, and many believe that it is the determinant of these developments. Accordingly, the research recommended: to work on diversifying the Saudi economy in order to move from a rentier economy to an economy with strong pillars based on the development of service, agricultural, industrial and production sectors, in order to reduce the severity of negative oil shocks on the Saudi economy, and the need to choose appropriate methods for investment Correct oil revenue.