Sovereign wealth funds have their role in reducing the price shocks of crude oil With reference to Iraq

Authors

  • حمدية شاكر مسلم
  • زهراء حسين حسان

DOI:

https://doi.org/10.33095/jeas.v25i112.1666

Keywords:

مفهوم صناديق الثروة السيادية, اهداف ودوافع صناديق الثروة السيادية, مفهوم الصدمات , انواع الصدمات , صدمات اسعار النفط الخام, صندوق تنمية العراق , برنامج تنمية الاقاليم ., The concept of sovereign wealth funds, goals and motives of the sovereign wealth funds, The concept of trauma, types of shocks, Crude oil price shocks, The Development Fund of Iraq, Regional Development Programme

Abstract

Abstract

            Sovereign wealth funds are an important tool for achieving economic stability and avoiding the local economy from external shocks, including the shocks of international oil prices. The spread of these funds is the result of large current account surpluses in many Asian and oil-exporting economies. These surpluses are due to higher commodity prices Has led to a rapid accumulation of foreign assets in central banks. Many countries with rent economies face the problem of their dependence on non-renewable natural resources, especially the oil countries, including Iraq. Oil revenues are more than 97% of oil exports, so they suffer from structural imbalances that make them vulnerable to external shocks and cyclical crises. The Development Fund for Iraq also depends on oil revenues, which stopped its work due to the decrease in these revenues in 2014 and transfer its amounts to an account in the Ministry of Finance. This decline to the investment allocations for the program of development of the regions, which led to blocking the work of investment projects aimed at achieving economic and social development and reduce the disparity in the distribution of investments between all Iraqi provinces, The wealth of generations must be preserved from waste and using its revenues in a manner that helps optimize the allocation of resources as the main sector to achieve development in the Iraqi economy to avoid the effects of the Dutch disease, and preferably there are hedges to absorb the negative effects of oil price shocks in the global market Through the diversification of total exports, which are the gross domestic product of the Iraqi economy and the diversification of public revenues.

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Published

2019-06-01

Issue

Section

Economics Researches

How to Cite

“Sovereign wealth funds have their role in reducing the price shocks of crude oil With reference to Iraq” (2019) Journal of Economics and Administrative Sciences, 25(112), pp. 321–347. doi:10.33095/jeas.v25i112.1666.

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