Political stability and its Impact on Macroeconomic Variables in Iraq after 2010

In: Maǧallat as-siyāsīya wa-'d-duwalīya: ˜Theœ international and political journal, Band 54, S. 409-436

Abstract

The aim of the research is to determine the relationship between political stability and the variables of the Iraqi macroeconomics from 2006 to 2021 and how this stability can reduce the shocks of the economic situation and its impact on choosing appropriate economic policies. This topic is one of the important topics that drew the attention of researchers and specialists in the political and economic fields.
Iraq's internal political stability affects the stability of its general economy, which depends on the oil sector, which accounts for more than 90% of the state's general revenues. Oil, in turn, is subject to price fluctuations in the global market. Therefore, the political shocks that Iraq is exposed to affect its economic policy greatly.
The results of the research revealed that there is a positive relationship between political stability and economic stability in Iraq, which is achieved through the stability of the Iraqi governmental political institutions, which leads to achieving economic growth, economic development and the welfare of the Iraqi society. The research has proven that instability has led to a decline in the performance of the Iraqi economy in most areas. Among other results, the emergence of corruption in all its forms as a result of failed policies, instability and waste of many of its resources in failed projects made Iraq one of the most corrupt countries.