THE IMPACT OF OIL PRICE ON ECONOMIC GROWTH: AN INVESTIGATION ON IRAQI ECONOMY

Iraq is one of the leading oil exporting countries. In general, the national income of the country depends on crude oil. Oil revenues in Iraq cover 90 percent of the Iraqi government's budget. The rising crude oil price may affect the economic growth in Iraq. On the other hand, it is very important to use another resource instead of oil revenues as a new strategy for national income. The main purpose of this study is to examine the effects of oil price and oil production value on economic growth in Iraq. For this purpose, annual growth rate, compound growth rate and correlation coefficient for the period between 1995-2017 were used. According to the results of the analysis, it was found that there is a statistically significant positive relationship between oil price and GDP, oil production value and GDP for Iraqi economy.