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THE                      JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 47-59
                    Error Correction Form results are presented below:

                    Table 6: Model 1 - short-run estimate results
                                                          Table 5
                                     Variable                                 Model 1
                                             Dependent variable: Real GDP growth
                                                                             -2.22***
                                                    −1                        (-13.37)

                                                                              0.66***
                                   ΔRGDPG    −1                                (5.47)
                                                                              0.28***
                                   ΔRGDPG    −2                                (4.15)
                                                                               -0.08
                                   ΔLRGOVREV
                                                                              (-1.45)
                                                                              0.28***
                                    ΔOILPRCG
                                                                               (3.96)
                                                                              -0.15*
                                  ΔOILPRCG   −1                               (-1.85)
                                    R-squared                                  0.89
                                Adjusted R-squared                             0.88
                                   Observations                                 69
                     Notes: Numbers in brackets represent t-Statistics.

                    Source: Compiled by author based on Eviews calculations

                    According  to  the  Model  1  long-run  estimation  results  (Table  5,  Panel  A),  a  1%
                    increase in government tax revenue results in a 0.16% decrease in real non-oil GDP
                    growth and a 0.10% decrease in real total GDP growth in the long run. This result is
                    in line with the results of Blanchard and Perotti (2002), Arnold et al. (2011), and
                    Aliyev and Nadirov (2016). Long-term estimation results also indicate that there is a
                    statistically  significant  positive  link  between  capital  investments  and  economic
                    growth (both total and non-oil economy) in Azerbaijan.

                    The total trade variable is also found to have a statistically significant positive link
                    with real GDP growth, including and excluding the oil sector. Oil price change is
                    found to have a statistically significant impact on both real non-oil GDP growth and
                    real total GDP growth. The statistically significant positive relationship between oil
                    prices and non-oil economic growth in Azerbaijan is in line with Aliyev and Nadirov
                    (2016) results.

                    The  short-term  estimation  results  (Tables  6  and  7)  also  offer  interesting  results.
                    Government  tax  revenue  does  not  seem  to  significantly  impact  (there  is  a  weak
                    negative  relationship)  real  total  GDP  growth  in  the  short  term,  but  there  is  a
                    statistically significant negative relationship between government tax revenue and real
                    non-oil GDP growth.




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