Impact of Fiscal Decentralization on Non-Oil Economic Growth in a Resource-Rich Economy

Hasanov, F., Mikayilov, C., Yusifov, S., & Aliyev, K. (2016). Impact of Fiscal Decentralization on Non-Oil Economic Growth in a Resource-Rich Economy. Eurasian Journal of Business and Economics, 9(17), 87-108.

22 Pages Posted: 30 Jul 2020

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

Jeyhun Mikayilov

Azerbaijan State University of Economics (UNEC)

Khatai Aliyev

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

Date Written: 2016

Abstract

The paper investigates effects of fiscal decentralization on non-oil sector development in case of Azerbaijan for the quarterly period of 2002 through 2013. Results obtained from Auto-regressive Distributed Lag Bounds Testing approach show that share of local expenditures and revenues in total, measures of fiscal decentralization, have negative impact on non-oil GDP. This finding is consistent with other studies outcomes and can be considered adequate for the Azerbaijani economy due to the number of institutional constraints. The results of the research would provide a good insight for policy makers in implementing economic reforms to develop institutional aspects of decentralization and thus make it supportive for non-oil economic growth.

Keywords: Fiscal Decentralization Economic Development; Local Government; Azerbaijan; Resource-Rich Economy

JEL Classification: H11; H20; H61; H71; H72

Suggested Citation

Hasanov, Fakhri and Mikayilov, Jeyhun and Aliyev, Khatai, Impact of Fiscal Decentralization on Non-Oil Economic Growth in a Resource-Rich Economy (2016). Hasanov, F., Mikayilov, C., Yusifov, S., & Aliyev, K. (2016). Impact of Fiscal Decentralization on Non-Oil Economic Growth in a Resource-Rich Economy. Eurasian Journal of Business and Economics, 9(17), 87-108., Available at SSRN: https://ssrn.com/abstract=3643335

Fakhri Hasanov

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 )

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Washington, DC 20052
United States
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HOME PAGE: http://research.columbian.gwu.edu/cer/research/forecasting

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

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Baku, Az1141
Azerbaijan
(994 12) 5390151 (Phone)
(994 12) 5392633 (Fax)

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

Jeyhun Mikayilov

Azerbaijan State University of Economics (UNEC) ( email )

Istiglaliyyat street 6
Baku, AZ Az1001
Azerbaijan

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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