The Impact of Global Oil Price Fluctuations on Household Spending Patterns in Iraq: A Field Survey Study in Baghdad and Basra
Year: 2025
Type: article
Study design: Observational Study
Abstract: This study aims to analyze the direct impact of global oil price fluctuations on the spending patterns of Iraqi households, focusing on a field survey study in the governorates of Baghdad and Basra. The importance of the research stems from the rentier nature of the Iraqi economy and its high dependence on oil revenues, which makes it vulnerable to economic shocks whose effects are transmitted to the micro level, that is, households. Although there have been previous studies on the impact of oil prices on macro variables, there is a clear research gap in understanding how households respond and adapt to these fluctuations at the level of their daily spending. The study relied on the descriptive analytical approach with a quantitative design, where data were collected from a suitable sample of 1500 completed questionnaires from families in Baghdad and Basra. The questionnaire included demographic, so-cial, and economic information, as well as questions about household spending patterns and changes, their awareness of the impact of oil fluctuations, and the fiscal adjustment mechanisms followed. The data were analyzed using descriptive statistics (frequencies and percentages) and cross-tabulations to explore relationships between variables. Key findings revealed a measurable impact of oil price fluctuations on Iraqi households' spending patterns. Low-income households showed a significant increase in their spending on basic goods (such as food), while significantly reducing their spending on luxuries and leisure. Recourse to borrowing has also been shown to be a common coping mechanism, especially among retirees. The study confirmed that the size of the family affects the extent to which it is affected, as larger families suffer from greater financial pressure in meeting basic needs. Overall, the majority of households in both cities perceived a negative impact of oil fluctuations on their livelihood stability.
DOI: 10.14419/2405e697
Authors: Dr. Muhammad Hazem Abbas, Dr.Badr Layedh Awadh, Dr. Yousif Aftan Abdullah
Institutions: University of Baghdad, Mazaya University College
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: No poverty
Open Access status: bronze
OpenAlex ID: W4415916689
FWCI:
Cites:
Cited by:
Related to: