Measuring the Impact of Oil Revenues on Iraq’s GDP for the Duration (2005-2020)

The oil sector has an important role in the Iraqi economy represented by its revenues, as oil exports constitute about 96% of the total exports on all macroeconomic variables, including national income, gross domestic product, foreign trade, investments in all its forms and its determination of economic development trends that depend on fluctuations in international oil prices in addition to the unexpected factors such as external shocks. Oil exports play an important role in the structure of foreign trade in oil countries, including Iraq, which faces many challenges that hinder the process of economic development, represented by the lack of capital prepared for investment and the lack of domestic savings. The controversy of the study lies in knowing whether the oil revenues contributed to increasing the gross domestic product and financing the general budget, that is, improving economic growth rates or not. The research aims primarily to achieve the validity of the hypothesis by shedding light on the reality of the oil sector in Iraq, the material, moral capabilities, and oil privileges to clarify the impact of the oil sector and its role in improving economic growth rates. Then, the research relied on the inductive approach in order to reach the objectives of the research by identifying the concept of the oil sector and its impact on achieving desirable economic growth rates using the standard quantitative method in measuring the impact of the oil sector on the gross domestic product in Iraq using the (Eview9) program. The benchmark indicates that the relationship between oil revenues and GDP is a direct relationship, and oil revenues are the main source for generating national income and GDP, as Iraq directly depends on oil revenues and thus the validity of the hypothesis was proven through the analytical side and the standard side, as oil revenues plays a major role in increasing the gross domestic product and thus improving the rate of economic growth.