The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan
The article studies the theoretical and practical approaches related to the allocation of oil revenues for public investment. Based on the two-step Engel-Granger procedure for cointegration analysis, the relationship between the ratio of the capital expenditures of the state budget to non-oil GDP a...
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| Format: | Article |
| Language: | English |
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EconJournals
2022-11-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/13656 |
| _version_ | 1797910301492903936 |
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| author | Baghish Ahmadov |
| author_facet | Baghish Ahmadov |
| author_sort | Baghish Ahmadov |
| collection | DOAJ |
| description |
The article studies the theoretical and practical approaches related to the allocation of oil revenues for public investment. Based on the two-step Engel-Granger procedure for cointegration analysis, the relationship between the ratio of the capital expenditures of the state budget to non-oil GDP and the logarithm of real oil prices in Azerbaijan is investigated. It has been determined that public investment in Azerbaijan is highly dependent on the oil price, and the volatility of the oil price also affects the volatility of these expenditures. So, it was proposed that the capital expenditures of the state budget should be determined based on the goals of economic development, and not depending on changes in oil prices.
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| first_indexed | 2024-04-10T11:22:20Z |
| format | Article |
| id | doaj.art-7594d35d050b4c77a94cd0982e247927 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T11:22:20Z |
| publishDate | 2022-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-7594d35d050b4c77a94cd0982e2479272023-02-15T16:18:33ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-11-0112610.32479/ijeep.13656The Impact of Oil Prices on the Capital Expenditures of the State Budget in AzerbaijanBaghish Ahmadov0Department of Economy and Technological Sciences, International Magistrate and Doctorate Center, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan. The article studies the theoretical and practical approaches related to the allocation of oil revenues for public investment. Based on the two-step Engel-Granger procedure for cointegration analysis, the relationship between the ratio of the capital expenditures of the state budget to non-oil GDP and the logarithm of real oil prices in Azerbaijan is investigated. It has been determined that public investment in Azerbaijan is highly dependent on the oil price, and the volatility of the oil price also affects the volatility of these expenditures. So, it was proposed that the capital expenditures of the state budget should be determined based on the goals of economic development, and not depending on changes in oil prices. https://econjournals.com/index.php/ijeep/article/view/13656Oil Price, Capital Expenditure, State Budget, Error Correction Model |
| spellingShingle | Baghish Ahmadov The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan International Journal of Energy Economics and Policy Oil Price, Capital Expenditure, State Budget, Error Correction Model |
| title | The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan |
| title_full | The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan |
| title_fullStr | The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan |
| title_full_unstemmed | The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan |
| title_short | The Impact of Oil Prices on the Capital Expenditures of the State Budget in Azerbaijan |
| title_sort | impact of oil prices on the capital expenditures of the state budget in azerbaijan |
| topic | Oil Price, Capital Expenditure, State Budget, Error Correction Model |
| url | https://econjournals.com/index.php/ijeep/article/view/13656 |
| work_keys_str_mv | AT baghishahmadov theimpactofoilpricesonthecapitalexpendituresofthestatebudgetinazerbaijan AT baghishahmadov impactofoilpricesonthecapitalexpendituresofthestatebudgetinazerbaijan |