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The Impact of Oil Factor on the Car Import in Azerbaijan

Author

Listed:
  • Sugra Ingilab Humbatova

    (Department of Economy and Managements, International Center for Graduate Education, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku, AZ?1001, Azerbaijan)

  • Natig Gadim-Ogli Hajiyev

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

Abstract

This paper analyzes the impact of oil exports and oil prices on car imports in Azerbaijan for the time span of 2010-2019 (monthly basis). There has been no study evaluating the direct effect of oil prices on import, especially, on car imports. However, similar issues have been studied in the context of the impact of oil prices on GDP or on many macroeconomic indicators of individual countries in general. The methodology used in this study is based on econometric methods which were used to analyse time series data. Stationary tests of variables (ADF, PP, and KPSS) were done. ARDL model was used as an research methodology. To investigate more specific aspects of the long run causality relationship between oil exports and oil imports, cointegration relationships are reassessed by using different econometric models such as FMOLS, DOLS and CCR. These estimates are consistent with the estimates obtained from ARDL model. Some remarkable contributions can be derived from this study toward the regulation of car imports in Azerbaijan. In general, it is concluded that in the long run, there is a positive effect of oil exports and oil prices on car imports in Azerbaijan.

Suggested Citation

  • Sugra Ingilab Humbatova & Natig Gadim-Ogli Hajiyev, 2020. "The Impact of Oil Factor on the Car Import in Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 450-462.
  • Handle: RePEc:eco:journ2:2020-04-57
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    References listed on IDEAS

    as
    1. Antonis Adam & Margarita Katsimi & Thomas Moutos, 2008. "Inequality and the Import Demand Function," CESifo Working Paper Series 2196, CESifo.
    2. Khatai Aliyev & Bruce Dehning & Orkhan Nadirov, 2016. "Modelling the Impact of Fiscal Policy on Non‑Oil Gdp in a Resource Rich Country: Evidence from Azerbaijan," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 1869-1878.
    3. Antonis Adam & Margarita Katsimi & Thomas Moutos, 2012. "Inequality and the import demand function," Oxford Economic Papers, Oxford University Press, vol. 64(4), pages 675-701, October.
    4. Q. Farooq Akram, 2004. "Oil prices and exchange rates: Norwegian evidence," Econometrics Journal, Royal Economic Society, vol. 7(2), pages 476-504, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    oil prices; oil exports; car imports; revenues; ARDL;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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