IMPACT OF INTEREST RATES ON MANUFACTURING'S SHARE OF GDP

Mikayilov F., Najafov S.

37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.212-218 identifier

  • Publication Type: Conference Paper / Full Text
  • City: Baku
  • Country: Azerbaijan
  • Page Numbers: pp.212-218
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

Paper provides analysis of the impact of interest rates on manufacturing's share of GDP across countries and argues that 1) interest rates differently affects tradable and non-tradable sectors, 2) manufacturing is more sensitive to interest rate fluctuations than the non-tradable sectors, and 3) high interest rates lead to the shift from the manufacturing to the non-tradable sectors that negatively affects the trade balance of goods and services.