The Impact of Tax and Oil Revenues on Economic Growth, Iraq: A Case Study for the Period (2004-2021)

Abstract

 This research aims primarily to clarify the role and importance of tax and oil revenues as an effective contributor to economic growth, especially the Iraqi economy, as tax revenues are one of the most important financial policy tools that play an important role in influencing the volume of economic activity, in addition to oil revenues that greatly affect Economic growth is due to the Iraqi economy’s dependence on oil revenues, as it is considered a rentier country par excellence , and thus the state has the responsibility of coordinating the size of revenues and exploiting them in the correct manner that guarantees the achievement of economic growth, especially in the event that the economy is exposed to a crisis, whether economic, political, or otherwise, as the research methodology was adopted. To use the inductive approach to analyze the theoretical and general aspects, in addition to using the deductive approach to analyze data and statistics through the quantitative measurement method to analyze the impact of tax and oil revenues on economic growth in Iraq for the period (2004-2021), as the research problem lies in studying the effects that the revenues can leave. Tax and oil revenues affect economic growth in Iraq, whether positive or negative. The research concluded that there is a positive impact of oil revenues on economic growth in addition to the negative impact of tax revenues on economic growth. As a result, the research recommends the necessity of finding alternative revenue sources to oil revenues. Through diversifying investments as well as monitoring tax revenues to know their true size in the economy for the purpose of achieving economic growth that suits the Iraqi economy.