Research Information System
International Journal of Energy Economics and Policy, vol.12, no.2, pp.379-385, 2022 (Scopus)
The place of exports in the economic development of a country has a very important share. Whether in developed or developing countries, energy demand makes energy exports important in exports. The aim of this study is to determine the relationship between Azerbaijan’s economic growth, total export amount and energy export. After Azerbaijan’s independence, the “Contract of the Century” agreement in 1994 has a very important role in the release of its energy resources to the international markets. In this context, the data subject to analysis were included in the analysis starting from 1994 to 2018. After taking the logarithmic values of the raw data, the data were made stationary, suitable lag lengths were found and then subjected to the Granger causality test. Then, correlation relationships were also examined to measure the strength of the relationship between the data. In the correlation evaluation, it was concluded that there is a strong relationship between exports and economic growth. In other words, the country’s development, growth and strong foreign exchange resources are possible with a strong export. However, as a result of Granger analysis, no causal relationship was found between growth and energy exports. The main reason for this is the country’s export of energy products to international markets in the form of raw materials. As a result of the study, it was found that importing processed energy products later causes more costly energy use for the country, and this leads to meaningless results in causality. Higher imports create difficulties in achieving the desired growth rate. At the same time, despite the high share of oil and natural gas in energy exports, the high level of electrical energy in imports causes a low relationship between economic growth and electrical energy exports. In the following process, the country’s ready launch of energy products to be exported will be the beginning of self-development and great successes to be achieved.