966
Serial number: 10/2014
Author(s): N.Aliyev, A.Gasimov, Sh.Adigozalov
Language: Azerbaijani
Date: 2014
Abstract: In this paper demand and exchange rate elasticity of import and export has been investigated over the 2001-2012 years in the case of Azerbaijan. Estimations has been done by decomposing import and export on consumption, intermediate and capital goods. Fixed effect model, FMOLS as well as GMM has been employed as a methodology of this paper. Results shows that, export (total as well as its components) has a higher positive foreign demand elasticity. Furthermore, growth of capital export mainly influenced by increase in foreign demand as well as by the exchange rate appreciation. Import of consumption goods also has a higher exchange rate elasticity.
Key words: Import, export, real bilateral and effective exchange rate, domestic and foreign demand
JEL classification: F1, F4
