Openness-Inflation Nexus in South Caucasus Economies

Aliyev, K., & Gasimov, I. (2014). Openness-Inflation Nexus in South Caucasus Economies (No. 62761). University Library of Munich, Germany.

17 Pages Posted: 31 Jul 2020

See all articles by Khatai Aliyev

Khatai Aliyev

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

Ilkin Gasimov

Institute for Scientific Research on Economic Reforms

Date Written: 2014

Abstract

Following Romer (1993), openness-inflation nexus has been subject to many empirical researches. However, South Caucasus economies are not studied yet. The aim of this research is to fill this gap in empirical literature by using multiple regression models and impulse-response function analysis for the region countries, Georgia, Armenia, and Azerbaijan, separately for the period 1996-2012. To define the level of openness, methodology in Ashra (2002) is used. Findings provide no significant impact of the openness on inflation level in all region countries, except partially Georgia. However, the direction of the relationship differs across countries because of the international trade patterns.

Keywords: Openness; Inflation; Georgia; Armenia; Azerbaijan; Time-Series Analysis; Impulse-Response Analysis

Suggested Citation

Aliyev, Khatai and Gasimov, Ilkin, Openness-Inflation Nexus in South Caucasus Economies (2014). Aliyev, K., & Gasimov, I. (2014). Openness-Inflation Nexus in South Caucasus Economies (No. 62761). University Library of Munich, Germany., Available at SSRN: https://ssrn.com/abstract=3643541

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

Ilkin Gasimov

Institute for Scientific Research on Economic Reforms ( email )

H. Zardabi Avenue, 88a
Baku, AZ1011
Azerbaijan

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