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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 1, 2020, pp.100-112
negative connection between REER and manufacturing and agriculture, but the
positive association between REER and services might point to the presence of
indirect de-industrialization, as well as spending effect of the theory.
Figure 6: Correlation between employment and REER in Azerbaijan, 2000-2018
Source: Own construction based on the SSCRA and Islamic Bank of Development.
Notes: 1) To put simply, the first column of the scatter matrix denotes the relationship where
REER is on the X-axis and where the Y-axis contains mining, manufacturing, agriculture, and
services employment data. Similar logic can be followed to understand other parts of the scatter
2
2
plot matrix; 2) The sample size is 19 for all variables; 3) R for REER and mining is 0.15, R for
2
2
REER, and services is 0.35, R for REER, and manufacturing is 0.11, R for REER and
agriculture is 0.034.
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