IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2018p396-399.html
   My bibliography  Save this article

Impact of Oil Price Fluctuations on Human Development: A Standard Study of Iraq

Author

Listed:
  • Munaf Marza*

    (Department of Economics, Faculty of Management and Economics/ University of Al-Qadisiyah, Iraq)

  • Sundus Jasim Shaaibith

    (Department of Economics, Faculty of Management and Economics/ University of Al-Qadisiyah, Iraq)

  • Shatha Salem Daly

    (Department of Economics, Faculty of Management and Economics/ University of Al-Qadisiyah, Iraq)

Abstract

This paper examines the impact of oil price fluctuations on Human development in Iraq. We employed UNDP statistical data in HDI and oil prices were obtained from OPEC official statistics. EGARCH model is applied to estimate the series of oil price fluctuation. Further, we applied ARDL bound test approach to estimate the long run relationship between HDI and oil price fluctuation. Evidence shows that there is a long run relationship among the variables under study. A significant impact on human development index is witness due to fluctuations in oil prices. Since the dependence of Iraqi economy on oil exports tightly align the government spending with oil revenues. Therefore, this study proposes that Government should adopt a diversified policy and invest in other sectors of the economy, such as the industrial sectors. Investment in these sectors will help to increase the output of exportable goods. Exports of these goods can earn more foreign exchange. This will reduce the heavy reliance on oil revenues. The government needs to spend more money to provide infrastructure like transport facilities and stable electricity supply. This will help encourage private companies to invest more in their economic resources by reducing the cost of doing business.

Suggested Citation

  • Munaf Marza* & Sundus Jasim Shaaibith & Shatha Salem Daly, 2018. "Impact of Oil Price Fluctuations on Human Development: A Standard Study of Iraq," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 396-399:5.
    • Handle: RePEc:arp:tjssrr:2018:p:396-399
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/spi5.9.396.399.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/special_issue/12-2018/5/4
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chang, Youngho & Wong, Joon Fong, 2003. "Oil price fluctuations and Singapore economy," Energy Policy, Elsevier, vol. 31(11), pages 1151-1165, September.
    2. Du, Limin & Yanan, He & Wei, Chu, 2010. "The relationship between oil price shocks and China's macro-economy: An empirical analysis," Energy Policy, Elsevier, vol. 38(8), pages 4142-4151, August.
    3. Nagmi M. Moftah Aimer, 2016. "The Effects of Oil Price Volatility on the Economic Sectors of Libya," International Journal of Business and Social Research, LAR Center Press, vol. 6(12), pages 13-24, December.
    4. Nagmi M. Moftah Aimer, 2016. "The Effects of Oil Price Volatility on the Economic Sectors of Libya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 6(12), pages 13-24, December.
    5. Hui Guo & Kevin L. Kliesen, 2005. "Oil price volatility and U.S. macroeconomic activity," Review, Federal Reserve Bank of St. Louis, vol. 87(Nov), pages 669-684.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simeon Oludiran Akinleye & Stephen Ekpo, 2013. "Oil Price Shocks and Macroeconomic Performance in Nigeria," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(4, Cierre), pages 565-624.
    2. Salah A. Nusair & Jamal A. Al-Khasawneh, 2018. "Oil price shocks and stock market returns of the GCC countries: empirical evidence from quantile regression analysis," Economic Change and Restructuring, Springer, vol. 51(4), pages 339-372, November.
    3. Nusair, Salah A. & Olson, Dennis, 2019. "The effects of oil price shocks on Asian exchange rates: Evidence from quantile regression analysis," Energy Economics, Elsevier, vol. 78(C), pages 44-63.
    4. Raza, Syed Ali & Shahbaz, Muhammad & Amir-ud-Din, Rafi & Sbia, Rashid & Shah, Nida, 2018. "Testing for wavelet based time-frequency relationship between oil prices and US economic activity," Energy, Elsevier, vol. 154(C), pages 571-580.
    5. Wang, Zanxin & Wei, Wei & Luo, Junwen & Calderon, Margaret, 2019. "The effects of petroleum product price regulation on macroeconomic stability in China," Energy Policy, Elsevier, vol. 132(C), pages 96-105.
    6. Le, Thai-Ha & Chang, Youngho, 2011. "The impact of oil price fluctuations on stock markets in developed and emerging economies," MPRA Paper 31753, University Library of Munich, Germany.
    7. Ju, Keyi & Zhou, Dequn & Zhou, P. & Wu, Junmin, 2014. "Macroeconomic effects of oil price shocks in China: An empirical study based on Hilbert–Huang transform and event study," Applied Energy, Elsevier, vol. 136(C), pages 1053-1066.
    8. Hong Thai Le & Marta Disegna, 2018. "Responses of macroeconomy and stock markets to structural oil price shocks: New evidence from Asian oil refinery," BAFES Working Papers BAFES25, Department of Accounting, Finance & Economic, Bournemouth University.
    9. Alexander Bass, 2019. "Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 288-294.
    10. Salah A. Nusair & Khalid M. Kisswani, 2015. "Asian Real Exchange Rates And Oil Prices: A Cointegration Analysis Under Structural Breaks," Bulletin of Economic Research, Wiley Blackwell, vol. 67(S1), pages 1-25, December.
    11. Motunrayo O AKINSOLA & NM ODHIAMBO, 2020. "Oil Price And Economic Growth Of Oil-Importing Countries: A Review Of International Literature," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 20(1), pages 129-140.
    12. Daniel Francois Meyer, 2018. "The Impact of Changes in Fuel Prices on Inflation and Economic Growth in South Africa," Proceedings of the 11th International RAIS Conference, November 19-20, 2018 010DM, Research Association for Interdisciplinary Studies.
    13. Jin‐Yu Chen & Xue‐Hong Zhu & Mei‐Rui Zhong, 2021. "Time‐varying effects and structural change of oil price shocks on industrial output: Evidence from China's oil industrial chain," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3460-3472, July.
    14. Christian Urom & Gideon Ndubuisi & Jude Ozor, 2021. "Economic activity, and financial and commodity markets’ shocks: An analysis of implied volatility indexes," International Economics, CEPII research center, issue 165, pages 51-66.
    15. Pham T. T. Trinh & Bui T. T. My, 2023. "The impact of world oil price shocks on macroeconomic variables in Vietnam: the transmission through domestic oil price," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(1), pages 67-87, May.
    16. Yating, Yang & Mughal, Nafeesa & Wen, Jun & Thi Ngan, Truong & Ramirez-Asis, Edwin & Maneengam, Apichit, 2022. "Economic performance and natural resources commodity prices volatility: Evidence from global data," Resources Policy, Elsevier, vol. 78(C).
    17. Nsisong Patrick Ekong & Daniel Wilson Ebong, 2016. "On the Crude Oil Price, Stock Market Movement and Economic Growth Nexus in Nigeria Evidence from Cointegration and Var Analysis," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 4(3), pages 112-123, September.
    18. Horváth, Lajos & Rice, Gregory & Zhao, Yuqian, 2022. "Change point analysis of covariance functions: A weighted cumulative sum approach," Journal of Multivariate Analysis, Elsevier, vol. 189(C).
    19. Jammazi, Rania, 2012. "Oil shock transmission to stock market returns: Wavelet-multivariate Markov switching GARCH approach," Energy, Elsevier, vol. 37(1), pages 430-454.
    20. Al-mulali, Usama & Che Sab, Che Normee, 2010. "The Impact of Oil Shocks on Qatar’s GDP," MPRA Paper 27822, University Library of Munich, Germany, revised 31 Dec 2010.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2018:p:396-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.