The Impact of Oil Revenues on the Gross Domestic Product in Iraq for the Period (2005–2020)

The oil sector plays a significant role in the Iraqi economy, particularly through its revenues, as oil exports constitute approximately 96% of total exports. These revenues influence all macroeconomic variables, including national income, gross domestic product (GDP), foreign trade, and investments in all their forms. The direction of economic development depends largely on fluctuations in global oil prices, in addition to unexpected factors such as external shocks. These exports also play a crucial role in shaping the structure of foreign trade in oil-producing countries, including Iraq, which faces numerous challenges that hinder the process of economic development, such as the lack of capital prepared for investment and insufficient domestic savings. The research problem lies in determining whether oil revenues have contributed to increasing GDP and financing the general budget, thereby improving economic growth rates. The primary objective of the research is to validate the hypothesis by highlighting the reality of the oil sector in Iraq, including its material and moral capabilities and oil privileges, and clarifying the impact and role of the oil sector in enhancing economic growth rates. The research adopts the inductive approach to achieve its objectives by exploring the concept of the oil sector and its impact on realizing desired economic growth rates, using quantitative econometric methods to measure the effect of oil revenues on GDP in Iraq through the use of the EViews 9 program. According to the econometric analysis, the relationship between oil revenues and GDP is a direct one. Oil revenues are the main source of generating national income and GDP, as Iraq directly relies on oil revenues. Thus, the hypothesis has been proven correct through both the analytical and econometric aspects, confirming that oil revenues play a key role in increasing GDP and consequently improving economic growth rates.