Sugra Humbatova
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The impact of bank credits on non-oil GDP: evidence from Azerbaijan
Shahriyar Mukhtarov , Sugra Humbatova , İlgar Seyfullayev doi: http://dx.doi.org/10.21511/bbs.14(2).2019.10Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 120-127
Views: 1457 Downloads: 235 TO CITE АНОТАЦІЯThis study explores the relationship between bank credits, exchange rate and non-oil GDP in Azerbaijan, utilizing FMOLS, CCR and DOLS co-integration methods to the data spanning from January 2005 to January 2019. The results from the different co-integration methods are consistent with each other and approve the presence of a long-run relationship among the variables. Estimation results reveal that there is a positive and statistically significant impact of bank credits and exchange rate on the non-oil GDP in the long run for the Azerbaijani case which are in line with the expectations and with the theoretical findings discussed in theoretical framework section. This finding also indicates that a 1% increase in credit and real exchange rate increases non-oil GDP by 0.51% and 0.56%, respectively. The results of this paper are useful for the policymakers and promote the economic literature for further researches in the case of oil-rich countries.