Dutch Disease Effects in the Azerbaijan Economy: Results of Multivariate Linear Ordinary Least Squares (OLS) Estimations
نویسندگان
چکیده
This paper investigates the increased role of extractive industry, particularly oil and gas, within Dutch disease model between 2000-2018 in Azerbaijan economy. phenomenon befalls when national economy produces exports a single commodity or particular sector becomes booming sector. Increased goods spendings accumulated mineral revenue appreciate currency, decreasing competitiveness thus production export volume non-booming sectors. is an gas-rich country which naturally actualizes existence syndrome . Therefore, purpose this research to separately reveal effects resource movement spending based on theoretical frame work constructed from core theory. The contains comprehensive literature review overall macroeconomic screening describe preconditions disease. Then, study employs 42 multivariate linear ordinary least squares (OLS) estimations. estimated models illustrate presence indirect de-industrialization (one form effect) effect hypothesis. However, does not find direct negative influence sectors aggregated lagging (i.e., manufacturing agriculture) non-tradable (services). Moreover, variables such as price growth rates, real effective exchange rate (REER), nominal (NEER), economic crisis periods failed significantly explain employment wages dynamics. these variables described certain channels output returns capital rates. sheds light interconnections economy’s labor resources, government spending, monetary channels. These indicate that hypothesis holds true for Azerbaijan. Of OLS coefficients, 90.5% were highly stable, suggests results are reliable. mainly tests general expectations original presents common ground conceptualize possible harmful gas Any causal derivations should be handled carefully.
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ژورنال
عنوان ژورنال: ????????????? ?????? ?????? ????? ?????????
سال: 2021
ISSN: ['1813-8705', '1813-8691']
DOI: https://doi.org/10.17323/1813-8691-2021-25-2-309-346