TƏNZİMLƏYİCİ MALİYYƏ ALƏTLƏRİNİN EMAL SEKTORUNDA İQTİSADİ ARTIMA TƏSİRİ: AZƏRBAYCAN NÜMUNƏSİNDƏ
THE EFFECT OF REGULATORY FINANCIAL TOOLS ON ECONOMIC GROWTH IN THE MANUFACTURING SECTOR: THE EXAMPLE OF AZERBAIJAN

Summary/Abstract: The research is devoted to assessing the causal relationship between financial development and economic growth in the manufacturing sector of Azerbaijan, rich in oil and gas resources. The Johansen cointegration test and Todo-Yamamota test are used to analyze the temporal and causal characteristics between indicators. The results showed that there is no cointegration between finance development and growth in the long run. Along with this, no evidence was found to indicate the existence of a causal relationship between financial development and growth in the manufacturing sector. The results show that improving the availability of financial resources does not have a positive impact on productivity and capital growth in the manufacturing sector. Moreover, financial development is more conducive to the growth of imports than to the growth of domestic production. Therefore, in order to improve the effectiveness of financial instruments, more in-depth studies of the institutional aspects of economic regulation are required.

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