Work detail

The Impact of Oil Prices on Macroeconomic Indicators in Azerbaijan and Georgia

Author: Mgr. Farhad Karimov, BMS
Year: 2015 - summer
Leaders: prof. Roman Horváth Ph.D.
Work type: Masters
Language: English
Pages: 77
Awards and prizes:
Abstract: Using a multivariate vector autoregression (VAR) approach, this paper investigates the
relationships between oil price and macroeconomic indicators of closely interrelated developing
economies of oil exporting Azerbaijan and oil importing Georgia based on monthly time series
from January 2001 to November 2012. The model is estimated for each country separately and
the results are object for comparison. The empirical evidence suggests that oil price has
significant effects on macroeconomy in both countries. In particular, these effects are positive for
all 3 macroeconomic variables on the example of Azerbaijan. On the example of Georgia, these
effects are positive for GDP and inflation rate, and, negative for exchange rate. On the other
hand, macroeconomic indicators of Azerbaijan fail to affect oil price level




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