The Impact of Global Oil Price Fluctuations on Household Spending Patterns ‎in Iraq: A Field Survey Study in Baghdad and Basra

  • Authors

    • Dr. Muhammad Hazem Abbas University of Baghdad, A College of Administration and Economics, Department of Economics
    • Dr.Badr Layedh Awadh Mazaya‏ ‏University College, College of Economics - Oil and Gas, Department of Economics
    • Dr. Yousif Aftan‏ ‏ Abdullah University of Baghdad, A College of Administration and Economics, Department of Economics
    https://doi.org/10.14419/2405e697

    Received date: August 12, 2025

    Accepted date: October 7, 2025

    Published date: November 4, 2025

  • Oil Price Fluctuations; Household Spending Patterns; Iraqi Households; Baghdad; Bas‎Ra

  • 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.

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  • How to Cite

    Abbas , D. M. H. ., Awadh , D. L. ., & Abdullah , D. Y. A. ‏. (2025). The Impact of Global Oil Price Fluctuations on Household Spending Patterns ‎in Iraq: A Field Survey Study in Baghdad and Basra. International Journal of Accounting and Economics Studies, 12(7), 142-152. https://doi.org/10.14419/2405e697