The impact of financial development on the manufacturing industry in resource-rich countries: Empirical evidence from Azerbaijan

The study is devoted to assessing the causal relationship between financial development and economic growth in manufacturing sector of Azerbaijan, a country rich oil gas resources. covers quarterly data from 2005-2021. Johansen co-integration test Toda-Yamamota are used analyze temporal characteristics indicators. results showed that there no long run. Along with this, evidence was found indicating presence variables short show increased credit availability does not necessarily positively impact productivity capital sector. At same time, loans contributes more imports than domestic production. hypothesis about negative "resource curse" on confirmed by market which makes it difficult assess securities market's growth. Research institutional aspects regulation finding ways increase relative attractiveness sectors could provide detailed recommendations improve effectiveness instruments.