A comparative Study in the Role of Private Sector in Relationships Analysis between Economic Sustainability and COVID-19: Evidence from Iraq and Russia

Abstract

The study is designed to investigate the effect of the twin crisis on the private sector and national outlook of the oil dependent nations of Iraq and Russia. It is specifically aimed to evaluate and compare the recovery strategies put in place to survive the small and medium size enterprise. It is also of specific concern to estimate the end to pressure on this sector resulting from the global health problem. Descriptive and comparative research methods forms the central analytical tools employed to synthesis the research dilemma. A year sample t-test is used to compare the level of pressure on the private sector, recovery strategies, it results, performance of other sectors and macroeconomic performance proxies. As members of Organization of Petroleum Export Countries, Iraq and Russia private sector under performed in 2020. The t-statistic results confirm no significant mean difference in the effect of the 2020 twin crisis on private sector of both nations. However, the findings noted COVID-19 rules abiding (high stringency index) and financial leverage aim to support the agro-sector as the Iraqi economy resilient strategies. Russia though with increase financial leverage, focuses on vaccine production and distribution. It is for this reason that the t-statistic noted a significant different in recovery/infected between both nations. Russia should endeavor to improve its stringency index while furthering its vaccination efforts. Iraq needs to engage more vaccination campaign while keeping an eye on it agro sector.

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