estimation of the impacts of non-oil traditional and nontraditional export sectors on non-oil export of azerbaijan

estimation of the impacts of non-oil traditional and nontraditional export sectors on non-oil export of azerbaijan

;Nicat Hagverdiyev;Ceyhun Mikayilov;Sabuhi Yusifov
journal of business and retail management research 2016 Vol. 2 pp. 77-89
103
hagverdiyev2016academicestimation

Abstract

The significant share of oil sector of the Azerbaijan export portfolio necessitates promotion of non-oil exports. This study analyzes weather the commodities which contain the main share (more than 70%) in non-oil export are traditional or non-traditional areas, using the so-called Commodity-specific cumulative export experience function, for the 1995-2015 time frame. Then, the impact of traditional and non-traditional exports on non-oil GDP investigated employing econometric model. The results of the study based on 16 non-oil commodities show that cotton, tobacco, and production of mechanic devices are traditional sectors in non-oil export. The estimation results of the model indicate that both, traditional and non-traditional non-oil export sectors have economically and statistically significant impact on non-oil GDP.

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