Burhan Mohammed
Abstract
Many studies have been investigated the relationship between oil prices, inflation and unemployment, as well as some others macroeconomics variables. This paper examines the relationship ...
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Many studies have been investigated the relationship between oil prices, inflation and unemployment, as well as some others macroeconomics variables. This paper examines the relationship between oil prices, inflation, and unemployment rate in Iraq. For this purpose, this paper utilizing unit root and co-integration test analysis to annual data from 2000 to 2020. The regression analysis was carried out by the (ARDL) model and the existence of Philips Curve between inflation and unemployment in Iraq. The result shows that the relationship between oil prices and inflation is negative in the short run and positive in the long run. In contrast, the relationship between unemployment and inflation is positive in the short run and negative in the long run. Also, the result confirms Philips curve the relationship between inflation and unemployment in the short run in Iraq. To increase employment in Iraq, it has to grow investments in different sectors. Moreover, to keep inflation under control, it is necessary to maintain a corresponding level of economic and pricing activity.
