Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan
Oil price changes has a great influence on the behaviour of firms in oil exporting countries which displays itself in amount of non‑oil tax receipts of the state budget. Employing FMOLS, DOLS, and CCR cointegration methods for 2001Q1–2015Q4, the study aims to analyse how oil price changes affects no...
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| Format: | Article |
| Language: | English |
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Mendel University Press
2019-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/67/3/0799/ |
| _version_ | 1818892856106942464 |
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| author | Khatai Aliyev Altay Ismayilov Ilkin Gasimov |
| author_facet | Khatai Aliyev Altay Ismayilov Ilkin Gasimov |
| author_sort | Khatai Aliyev |
| collection | DOAJ |
| description | Oil price changes has a great influence on the behaviour of firms in oil exporting countries which displays itself in amount of non‑oil tax receipts of the state budget. Employing FMOLS, DOLS, and CCR cointegration methods for 2001Q1–2015Q4, the study aims to analyse how oil price changes affects non‑oil tax revenues in Azerbaijan. Empirical results altogether provide strong scientific evidence that there is U‑shaped causality from oil price changes to total non‑oil tax revenues , corporate income tax receipts and labour income tax payments , and inverse U‑shaped to non‑oil VAT revenues of the state budget. Results show that firms face with the trade‑off between “produce‑and‑sell” and “import‑and‑sell” as oil price rises. In case of higher price than the threshold level, companies prefer the latter choice. Research findings are highly useful for the public policy decision‑makers in resource rich economies. |
| first_indexed | 2024-12-19T18:03:21Z |
| format | Article |
| id | doaj.art-71faeb42b30444b8bfa7f0a527c52bda |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-19T18:03:21Z |
| publishDate | 2019-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-71faeb42b30444b8bfa7f0a527c52bda2022-12-21T20:11:31ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102019-01-0167379981010.11118/actaun201967030799Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from AzerbaijanKhatai Aliyev0Altay Ismayilov1Ilkin Gasimov2Department of Public Policy Modelling, ASERC, Baku, Azerbaijan; Department of World Economy, Baku Engineering University, Khirdalan, Azerbaijan; UNEC Empirical Researches Center, Azerbaijan State University of Economics (UNEC), Baku, AzerbaijanInternational School of Economics, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; Knowledge Economy UNEC Researches Center, Azerbaijan State University of Economics (UNEC), Baku, AzerbaijanDepartment of Public Policy Modelling, ASERC, Baku, Azerbaijan; Institute for Scientific Research on Economic Reforms, Ministry of Economy of the Republic of Azerbaijan, Baku, Azerbaijan; UNEC Empirical Researches Center, Azerbaijan State University of Economics (UNEC), Baku, AzerbaijanOil price changes has a great influence on the behaviour of firms in oil exporting countries which displays itself in amount of non‑oil tax receipts of the state budget. Employing FMOLS, DOLS, and CCR cointegration methods for 2001Q1–2015Q4, the study aims to analyse how oil price changes affects non‑oil tax revenues in Azerbaijan. Empirical results altogether provide strong scientific evidence that there is U‑shaped causality from oil price changes to total non‑oil tax revenues , corporate income tax receipts and labour income tax payments , and inverse U‑shaped to non‑oil VAT revenues of the state budget. Results show that firms face with the trade‑off between “produce‑and‑sell” and “import‑and‑sell” as oil price rises. In case of higher price than the threshold level, companies prefer the latter choice. Research findings are highly useful for the public policy decision‑makers in resource rich economies.https://acta.mendelu.cz/67/3/0799/oil price changesfirm behaviournon oil sectortax revenuesthreshold levelproduce and sell |
| spellingShingle | Khatai Aliyev Altay Ismayilov Ilkin Gasimov Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis oil price changes firm behaviour non oil sector tax revenues threshold level produce and sell |
| title | Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan |
| title_full | Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan |
| title_fullStr | Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan |
| title_full_unstemmed | Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan |
| title_short | Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan |
| title_sort | modelling elasticity of non oil tax revenues to oil price changes is there u shaped association evidence from azerbaijan |
| topic | oil price changes firm behaviour non oil sector tax revenues threshold level produce and sell |
| url | https://acta.mendelu.cz/67/3/0799/ |
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