The Impact of Real Effective Exchange Rate on the Non-Oil Export: The Case of Azerbaijan

19 Pages Posted: 16 Mar 2011

See all articles by Hasanov Fakhri

Hasanov Fakhri

Qafqaz University - Center for Socio-Economic Research; George Washington University - Research Program on Forecasting; Institute of Cybernetics - Department of Modeling Socio-Economic Processes

Ilaha Samadova

affiliation not provided to SSRN

Date Written: November 1, 2010

Abstract

The paper investigates the impact of the real exchange rate on non-oil exports in Azerbaijan by applying Vector Error Correction Model. The estimation results suggest that real exchange rate has negative impact on non-oil export performance while non-oil GDP affects positively in the long- and short-run. Error correction term indicates that short-run fluctuation can be adjusted into long-run equilibrium relationship. Based on findings of the study can be concluded that appreciating real exchange rate is one of major factors that impede non-oil export growth. Since promotion of non-oil export is one of the urgent issues of the strategic economic policy of Azerbaijan Republic then findings of this study may be useful for policymakers.

Keywords: Azerbaijani economy, Non-oil export, Real effective exchange rate, Non-oil GDP, Dutch Disease, Vecto

JEL Classification: C32, F31, F41, O24, P28

Suggested Citation

Hasanov, Fakhri and Samadova, Ilaha, The Impact of Real Effective Exchange Rate on the Non-Oil Export: The Case of Azerbaijan (November 1, 2010). Available at SSRN: https://ssrn.com/abstract=1784286 or http://dx.doi.org/10.2139/ssrn.1784286

Fakhri Hasanov (Contact Author)

Qafqaz University - Center for Socio-Economic Research ( email )

Baku Sumgait Road 16th km.
Hasan Aliyev Str. 120
Khirdalan, Baku AZ0101
Azerbaijan
+994 (12) 4482862-66 (Phone)
+994 (12) 4482861,67 (Fax)

HOME PAGE: http://www.qu.edu.az/

George Washington University - Research Program on Forecasting ( email )

1922 F Street, NW
Old Main, Suite 208
Washington, DC 20052
United States
(202) 994-6150 (Phone)
(202) 994-6147 (Fax)

HOME PAGE: http://research.columbian.gwu.edu/cer/research/forecasting

Institute of Cybernetics - Department of Modeling Socio-Economic Processes ( email )

9, F. Agayev Str.
Baku, Az1141
Azerbaijan
(994 12) 5390151 (Phone)
(994 12) 5392633 (Fax)

HOME PAGE: http://www.cyber.az/

Ilaha Samadova

affiliation not provided to SSRN ( email )

Register to save articles to
your library

Register

Paper statistics

Downloads
237
Abstract Views
1,177
rank
129,042
PlumX Metrics