The Impact of Oil Shocks on Managing Fiscal Policy in Iraq During the Period (2005-2020)
Bilal. Noori. Khairullah
Atheer Abdul Jabbar. M. Aldoodan
Dr. Zahid. K. Badan
Keywords: Oil Shocks, Cointegration, Shock Response Function, Variance, Government Agreement.
The Iraqi economy is one of the economies that is constantly exposed to oil shocks that affect the overall economy and make the Iraqi economy a rentier dependent on output in the oil sector, and a decline in the contribution of the rest of the economic sectors. Depends on the volume of oil exports, and when oil revenues decline, the state resorts to borrowing to cover public expenditures, based on the assumption that the impact of shocks in the oil sector is transmitted directly to government spending and then reverberates throughout the economy through the resource curse and the economy’s rentier, and through integration analysis The joint show that there is a long-term balance between the variables so as to be able to correct the imbalances that occur during the oil shocks.