An analysis and measurement of the effect of changes in public revenues on selected macro variables of the Iraqi economy from 2008 to 2021

Economic Annals-ХХI: Volume 188, Issue 3-4, Pages: 77-84

Citation information:
Hussein, M. Y. (2021). An analysis and measurement of the effect of changes in public revenues on selected macro variables of the Iraqi economy from 2008 to 2021. Economic Annals-XXI, 188(3-4), 77-84. doi: https://doi.org/10.21003/ea.V188-09

Muna Younus Hussein
PhD (Economics),
Assistant Professor,
Department of Economics,
College of Administration and Economics,
Al-Mustansiriya University
P.O. Box: 14022, Palestine Str., Baghdad, 10052, Iraq
munayounis09@uomustansiriyah.edu.iq
ORCID ID: https://orcid.org/0000-0001-6711-5396

An analysis and measurement of the effect of changes in public revenues on selected macro variables of the Iraqi economy from 2008 to 2021

Abstract. Public revenues determine the extent to which governments finance their public spending and development programs. Also it is known that the fluctuations of these revenues have negative effects on the overall economic life of any economy, regardless of its development level and structural diversity, and, accordingly, changes in public revenues (especially oil ones) in the economy. The research seeks to demonstrate the impact of that change on those variables, since the research shows the dominance of oil revenues on total public revenues, which indicates the extent of the structural imbalance in the structure of exports to the Iraqi economy, along with a significant weakness of other sources in the formation of public revenues in the period between 2008 and 2021. The research also highlights a need for the government to develop a clear strategy aimed at managing and allocating oil wealth optimally according to a well-studied economic vision in order to reduce the structural distortion that the national economy suffers from, with an emphasis on the need to work on complementing oil revenues with reconstruction and developing the real economy and to diversify sources of income in the economy in order not to depend on oil exports to finance the general budget and control inflation rates.

Keywords: Public Revenues; Money Supply; Inflation; Gross Domestic Product; Impact of Public Revenues on Macroeconomic Variables

JEL Classifications: O10; O18

Acknowledgements and Funding: The author received no direct funding for this research.

Contribution: The author contributed personally to this work.

Data Availability Statement: The dataset is available from the author upon request.

DOI: https://doi.org/10.21003/ea.V188-09

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Received 11.03.2021
Received in revised form 21.03.2021
Accepted 30.03.2021
Available online 10.05.2021