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Impact of investment on GDP and non-oil GDP in Azerbaijan

Author

Listed:
  • Sugra Ingilab Humbatova

    (Azerbaijan State University of Economics, Azerbaijan)

  • Sugra Ingilab Humbatova

    (Baku Engineering University, Azerbaijan)

  • Sabuhi Mileddin Ogli Tanriverdiev

    (Azerbaijan State University of Economics, Azerbaijan)

  • Ilgar Nariman Mammadov

    (Presidium Council of the Unions of Appraisers of Eurasia International Association, Belarus)

  • Ilgar Nariman Mammadov

    (Azerbaijan Appraisers Society, Azerbaijan)

  • Natig Gadim-Oglu Hajiyev

    (Azerbaijan State University of Economics, Azerbaijan)

Abstract

The causal relationship among, investment and growth is mixed and controversial both the oretically and empirically. There is large empirical literature which examines the investment-growth nexus. This paper examines the causal relationship among, investment and economic growth in Azerbaijan using months’ time series data from 2010-2019. Results for Augmented Dickey‒Fuller (ADF), Phillips−Perron (PP) and Kwiatkowski−Phillips−Schmidt−Shin (KPSS) unit root tests show that all variables under consideration are I(1). Result from the Auto Regressive Distributed Lag Bounds Testing (ARDLBT) indicates that there exists cointegration among gross domestic investment, gross domestic product. İnvestment have significant positive effect on economic growth of Azerbaijan both in the short-run and in the long-run.

Suggested Citation

  • Sugra Ingilab Humbatova & Sugra Ingilab Humbatova & Sabuhi Mileddin Ogli Tanriverdiev & Ilgar Nariman Mammadov & Ilgar Nariman Mammadov & Natig Gadim-Oglu Hajiyev, 2020. "Impact of investment on GDP and non-oil GDP in Azerbaijan," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2645-2663, June.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:4:p:2645-2663
    DOI: 10.9770/jesi.2020.7.4(6)
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    References listed on IDEAS

    as
    1. Judson, Ruth, 1998. "Economic Growth and Investment in Education: How Allocation Matters," Journal of Economic Growth, Springer, vol. 3(4), pages 337-359, December.
    2. Yang Zou, 2006. "Empirical studies on the relationship between public and private investment and GDP growth," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1259-1270.
    3. Heng-fu Zou, 2006. "Studies on Macroeconomics," CEMA Working Papers 523, China Economics and Management Academy, Central University of Finance and Economics.
    4. Madsen, Jakob B., 2002. "The causality between investment and economic growth," Economics Letters, Elsevier, vol. 74(2), pages 157-163, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    GDP; non-oil GDP; economic growth; investment; Auto Regressive Distributed Lag Bounds Testing (ARDLBT) approach;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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