Modelling Oil-Sector Dependency of Tax Revenues in a Resource Rich Country: Evidence from Azerbaijan

Musayev, A., & Aliyev, K. (2017). Modelling Oil‑Sector Dependency of Tax Revenues in a Resource Rich Country: Evidence from Azerbaijan. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(3), 1023-1029.

8 Pages Posted: 30 Jul 2020

See all articles by Akif Musayev

Akif Musayev

affiliation not provided to SSRN

Khatai Aliyev

Azerbaijan State University of Economics (UNEC); Baku Engineering University

Date Written: 2017

Abstract

Forecasting tax revenues is an important issue in budget planning. As a resource rich country, Azerbaijan’s budget revenues is severely depend on oil price and production levels. This study investigates oil sector dependency of state budget tax revenues in case of Azerbaijan by employing FMOLS, DOLS and CCR cointegration methods for the period of 2000Q1–2015Q2. Empirical results indicate statistically and economically significant positive long‑run impact of both oil related factors on tax revenues. Considering current fiscal challenges in the country, research findings are very useful for policy purposes and fills the gap in the literature by drawing mechanism of the association and estimating the relationship empirically.

Keywords: tax revenues; oil price; oil production; oil dependency; Azerbaijan

JEL Classification: H11; H20; H61; H71

Suggested Citation

Musayev, Akif and Aliyev, Khatai, Modelling Oil-Sector Dependency of Tax Revenues in a Resource Rich Country: Evidence from Azerbaijan (2017). Musayev, A., & Aliyev, K. (2017). Modelling Oil‑Sector Dependency of Tax Revenues in a Resource Rich Country: Evidence from Azerbaijan. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(3), 1023-1029., Available at SSRN: https://ssrn.com/abstract=3643329

Akif Musayev

affiliation not provided to SSRN

Khatai Aliyev (Contact Author)

Azerbaijan State University of Economics (UNEC) ( email )

Istiglaliyyat street 6
Baku, AZ Az1001
Azerbaijan

Baku Engineering University ( email )

Hasan Aliyev str. 120
Khirdalan, Baku AZ 0101
Azerbaijan

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