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.
Highlights
The oil emergency was one of the greatest variables driving some oil utilization and industrialized nations, for example, the US and Britain into a retreat that kept going over a year
The history rehashed itself, when Iranian oil interfered with the creation of the Iranian transformation, trailed by the Iraq-Iran war, which prompted taking off oil costs in 1979– 80
This study evaluated the impact of oil price fluctuations in Iraq on human capital development index using the EGRACH model and the ARDL bound test method
Summary
The oil emergency was one of the greatest variables driving some oil utilization and industrialized nations, for example, the US and Britain into a retreat that kept going over a year. The history rehashed itself, when Iranian oil interfered with the creation of the Iranian transformation, trailed by the Iraq-Iran war, which prompted taking off oil costs in 1979– 80. This time, notwithstanding supply stuns, oil costs ascended because of foreseen supply deficiencies and rising worldwide interest, as inventories request Increased. Value stuns have majorly affected US total national output, and the US economy has dove into subsidence. The sharp changes in oil costs have assumed a vital job in pushing the economy into retreat and even the crumple of the administration. Financial specialists and worldwide policymakers are firmly following the oil value slant (Dogah, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
