The relationship between public debt and economic growth: The case of Azerbaijan

Creative Commons License

Jabiyev F., Asgarov A., Heydarli T.

Journal of International Studies, vol.15, no.4, pp.213-225, 2022 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 15 Issue: 4
  • Publication Date: 2022
  • Doi Number: 10.14254/2071-8330.2022/15-4/13
  • Journal Name: Journal of International Studies
  • Journal Indexes: Scopus, Central & Eastern European Academic Source (CEEAS), EconLit, Directory of Open Access Journals
  • Page Numbers: pp.213-225
  • Keywords: Azerbaijan, economic growth, FMOLS, public debt
  • Azerbaijan State University of Economics (UNEC) Affiliated: No

Abstract

This study investigates the relationship between public debt and economic growth in Azerbaijan by applying FMOLS model to data from 1995 to 2020. The findings of the study show that government debt negatively affects economic growth. They also indicate that a 1% growth in export and real exchange rate increases GDP by 0.209% and 0.202%, respectively. The results of this study are useful for policymakers and they advance the economic literature to facilitate further research into developing oil-rich countries.