The Impact of Oil Price on Economic Development of Kurdistan Region of Iraq for Time Period (1997–2019)

Abstract

Kurdistan region of Iraq signifies a great case study to investigate the impact of oil price, for the reason that most of its producing reliance on exporting crude oil KRG is one of the main oil exporting regions. Usually, the national revenue relies on crude oil revenue in KRG comprises a great percentage of Kurdistan region of Iraqi government’s budget and also KRG’s economy can be impact by would economic during economic difficulties. Consequently, growing oil crude oil price can influence on economic development in Kurdistan region of Iraq. Therefore, it is important to utilize other resource instead of oil income as a different approach to increase region’s income. The key objective of this article is to investigate the impacts of oil price and oil production value on economic development. Annual growth rate, compound growth rate and correlation coefficient can be utilized to estimate of the data. The findings revealed that an economic development is one of the most significant sources of economic transformation since it reproduces the society's capability to rise productive volume and ideal investment and likewise sustainability obligation comprises an expanded economy on the face of shocks, dynamically implements technology and head accumulation human money, competitively can increase comparative advantages compared to the other. Consequently, it operates within steady, balanced economic strategies and economic growth and there was positively statistically significance between oil price and GDP, oil production value and GDP.