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The Impact of Oil Factor on Azerbaijan Economy

Author

Listed:
  • Sugra Ingilab Humbatova

    (Department of Economy and Managements, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan,)

  • Ragif Kh. Gasimov

    (Department of Economy and Business Administration, Azerbaijan State University of Economics (UNEC), Baku 1001, Azerbaijan)

  • Natig Gadim-Oglu Hajiyev

    (Department of Regulation of Economy, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan)

Abstract

The paper examines the role of oil in the world economy and its impact on Azerbaijan economy. The reciprocal relations between factors in research were carried out by differential model of time series and times series have been checked whether they are unit root (Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) as a methodology of the research. The research focused on the econometric analysis through traditional methods and statistics like EVIEWS 9, GRETL, PASW Statistics. The results confirm that the formation of demand and supply didn t happen in the world market during 15-20 years. The relationships between oil prices and demand and supply prove the novelty of the research. The impact of oil price fluctuations on economic concept was high in 2007-2009 and 2014-2016. The practical importance of the article is the employment of the income ? generated from the contract of the century ? for the human development.

Suggested Citation

  • Sugra Ingilab Humbatova & Ragif Kh. Gasimov & Natig Gadim-Oglu Hajiyev, 2019. "The Impact of Oil Factor on Azerbaijan Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 381-387.
    • Handle: RePEc:eco:journ2:2019-04-47
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    References listed on IDEAS

    as
    1. Apergis, Nicholas & Miller, Stephen M., 2009. "Do structural oil-market shocks affect stock prices?," Energy Economics, Elsevier, vol. 31(4), pages 569-575, July.
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    Cited by:

    1. Katarzyna Czech & Ibrahim Niftiyev, 2021. "The Impact of Oil Price Shocks on Oil-Dependent Countries’ Currencies: The Case of Azerbaijan and Kazakhstan," JRFM, MDPI, vol. 14(9), pages 1-14, September.
    2. Fatih Kaplan & Ayşe E. Ünal, 2020. "Industrial Production Index - Crude Oil Price Nexus: Russia, Kazakhstan And Azerbaijan," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(227), pages 119-142, October –.
    3. Orkhan Tashakkul Sadigov, 2020. "Effective Ways to Inject Oil Revenues into the Economy in Oil Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 319-323.
    4. Zulfigarov, Farid & Neuenkirch, Matthias, 2020. "The impact of oil price changes on selected macroeconomic indicators in Azerbaijan," Economic Systems, Elsevier, vol. 44(4).

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    More about this item

    Keywords

    Economic Development; Oil Prices; Econometric Analysis; Functional Dependence; Macroeconomic Indicators;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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