The Impact of Terrorism and Governance on Economic Growth in Iraq: Evidence from 2004 to 2024

Impact of Terrorism and Governance on Economic Growth in Iraq

Authors

DOI:

https://doi.org/10.63841/iue23562

Keywords:

Terrorism, Governance, Economic Growth, Oil Revenues4, Government Expenditure

Abstract

This study analyzes the complex interactions among terrorism, governance, and economic growth in Iraq during a two-decade span (2004–2024). The research uses diverse econometric models, such as Granger Causality, Co-integration, and Vector Autoregression (VAR), to examine the effects of political stability, government expenditure, oil revenues, and terrorism on Iraq's economic performance. The results indicate a substantial inverse correlation between terrorism and economic growth, with increased terrorist activity resulting in pronounced decreases in GDP, oil revenues, and general economic performance. Governance, marked by low political stability and fragile institutional frameworks, intensifies the adverse impacts of terrorism, obstructing economic development. The research underscores the necessity of diversifying Iraq's economy beyond oil reliance and tackling income disparity to promote sustained stability and progress. The findings provide critical insights for policymakers, highlighting the necessity for extensive reforms that enhance governance, mitigate terrorism, and foster sustainable economic development in Iraq.

Author Biographies

  • Hawre Latif Majeed, Department of Business Administration, Kurdistan Technical Institute, Sulaymaniyah, Kurdistan Region, IRAQ

    Hawre L. Majeed is a [Lecturer] head of the Business Administration Department, Kurdistan Technical Institute. He got the B.Sc. degree in [Economic], the M.Sc. degree in [Economic]. His research interests are in [Economic] - [Finance] and [Economic Policy]. and published [9] papers and [1] book.

  • Hajar Abdulqader Salih, Department of Accounting, College of Administration & Economics, Charmo university, Chamchamal, IRAQ

    Hajar Abdulqader Salih is a [Lecturer] at the Department of Accounting [College of Administration & Economics at Charmo University. He got the B.Sc. degree in [Economic], the M.Sc. degree in [Public Finance] my research interests are in [Economic]and [Finance]. and published [3] papers.

  • Beston Muhammed Qadir, Department of Oil and Gas Management, Charmo University, Chamchamal, Sulaymaniyah, Kurdistan Region, IRAQ

    Beston Muhammed Qadir is a [Assistant Lecturer] at the Department of [Oil, Gas and Energy Management], College of [Business], [Charmo] University. He got the B.Sc. degree in [geographic], the M.Sc. degree in [Oil and Gas Management] and the Ph.D. degree in [Oil and Gas Management]. His research interests are in [Oil and Gas Management], [Risk Management], and published [7] papers.

References

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Published

2025-07-16

Issue

Vol. 2 No. 03 (2025)

Section

Business & Administration

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Copyright (c) 2025 Academic Journal of International University of Erbil

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

The Impact of Terrorism and Governance on Economic Growth in Iraq: Evidence from 2004 to 2024: Impact of Terrorism and Governance on Economic Growth in Iraq. (2025). Academic Journal of International University of Erbil, 2(03), 248-262. https://doi.org/10.63841/iue23562