TƏBİİ RESURSLARLA ZƏNGİN ÖLKƏDƏ TİCARƏTİN AÇIQLIĞININ İQTİSADİ ARTIMA TƏSİRİ: AZƏRBAYCAN NÜMUNƏSİNDƏ
EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN A COUNTRY RICH IN NATURAL RESOURCES: THE EXAMPLE OF AZERBAIJAN

Summary/Abstract: A review of modern economic literature shows the lack of consensus on the relationship between the trade openness policy and the economic growth of countries. There is also an opinion that the policy of openness in emergent and resource-rich countries presents more opportunities for growth and development. Is this true, and under what conditions does openness lead to growth? Exploring the nature of the relationship between trade openness and economic growth in resource-rich emerging countries is the purpose of this article. The economy of Azerbaijan, rich in hydrocarbon resources, has been chosen as the object of study. The VAR model using ADF tests and Johansen's cointegration was chosen as a method of analyzing and evaluating the causal nature of the relationship between openness and growth. Trade openness ratio and GDP per capita are chosen as model variables. The study covers annual data from 1995 to 2020. It was found that in the long run there are no cointegration relationships between variables, in the short run there is a unidirectional causal relationship from openness to growth, and the effect of growth to openness is not statistically significant. The results show that Azerbaijan, by selling oil to the world market, receives economic benefits from openness, but the short-run nature of such benefits and the lack of feedback from growth to openness suggest that there are certain problems in the diversification and quality of the country's exports.

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