IMPACT OF INVESTMENT ON GDP AND NON-OIL GDP IN AZERBAIJAN

Creative Commons License

Humbatova S. I., Tanriverdiev S. M., Mammadov I. N., Hajiyev N. G.

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES, vol.7, no.4, pp.2645-2663, 2020 (ESCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 7 Issue: 4
  • Publication Date: 2020
  • Doi Number: 10.9770/jesi.2020.7.4(6)
  • Journal Name: ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, Directory of Open Access Journals
  • Page Numbers: pp.2645-2663
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

The causal relationship among, investment and growth is mixed and controversial both the oretically and empirically. There is large empirical literature which examines the investment-growth nexus. This paper examines the causal relationship among, investment and economic growth in Azerbaijan using months' time series data from 2010-2019. Results for Augmented Dickey Fuller (ADF), Phillips Perron (PP) and Kwiatkowski Phillips Schmidt Shin (KPSS) unit root tests show that all variables under consideration are I(1). Result from the Auto Regressive Distributed Lag Bounds Testing (ARDLBT) indicates that there exists cointegration among gross domestic investment, gross domestic product. Investment have significant positive effect on economic growth of Azerbaijan both in the short-run and in the long-run.