The impact of rentier behavior on the efficient performance of public spending and its implications for economic growth in Iraq for the period 2003-2020

Abstract

In oil-producing countries, public spending exercises multiple roles on economic activity, the most important of which is that it is an engine for economic growth and stability, and a tool for distributing oil resource revenues to various sectors of the national economy and different segments of society, as well as being the tool linking oil price fluctuations and the direction of the economic cycle in these countries. Therefore, this paper attempts to uncover and analyze the dynamic relationship between the oil triad, public spending and economic growth, expressed in GDP at constant prices, in the Iraqi economy during the period (2003-2020) through the use of statistical data and tables. The results of the analysis showed that public spending financed by oil revenues has an influential role in economic growth, and that economic growth is a variable dependent on public spending and not vice versa.