The Effect of Fuel Prices Support Policy on Growth of Economic Sectors: Evidence from Sulaymaniyah Governorate During 2005 – 2015

Abstract

Through an in-depth analysis of the developing countries and in particular, their historical effort stages, we realize that many of the economic policies that were adopted did not carry any of the assumed rationality economically nor the visible horizon of targeted levels of economic and social development as a necessary product of a long-term development stage. Moreover, this undoubtedly, represents a rebound in the context of growth and decades of development effort that could have transmitted a qualitative shift in society through high living standards, income growth, and building an economy capable of self-growth and job creation. Besides, fuel subsidy policies are among the policies followed by some world countries, including Iraq, the Kurdistan Regional Government, and the Sulaymaniyah Governorate as a model, in order to encourage its sectors. However, in many cases, this support is not sufficient, or perhaps its negative results are greater than its positive results. For this reason, most of the countries that have fuel subsidy policy are used to repair or remove this subsidy, in other words, not every price support always has a positive effect; thus, this research has attempted to clarify the effect of that support on the growth of the selected economic sectors (industry, agriculture, and transport sector) in Sulaymaniyah province.