Economic Growth and Income Inequality in Iraq: An Assessment of the Impact of Public Revenues and Transfers on Income Redistribution

Iraq's hydrocarbon wealth is a cornerstone of its Growth domestic product and government revenue, yet significant income inequality, as reflected by the Gini Index, poses persistent economic challenges. The unequal distribution of oil-derived income constrains public sector wages and investments, exacerbating social instability and impeding progress on the Human Development Index (HDI). Empirical analysis reveals a strong, consistent relationship between income inequality and developmental outcomes, with stationary trends indicating stable patterns over time. Addressing these disparities requires targeted interventions to promote sustainable growth. Reducing inequality and expanding opportunities for marginalized groups are essential. Leveraging information and communication technology to boost employment, alongside policies ensuring wage equity, labor inclusion, and social protection, can improve HDI outcomes. This study examines data spanning (1990 to 2024) to analyze Iraq's economic structure, employing robust empirical models that confirm these relationships. The analysis demonstrates high reliability, with no evidence of heteroskedasticity, serial correlation, or multicollinearity. Promoting equity across employment sectors and empowering collective bargaining are pivotal steps toward fostering a more inclusive and sustainable economic framework for Iraq.