The Role of Social and Physical Infrastructure Spending in Tradable and Non-Tradable Growth

• Autorzy: Fakhri F. Hasanov , Jeyhun I. Mikayilov , Sabuhi Yusifov , Khatai Aliyev , Samra Talishinskaya
• Języki publikacji: EN

Abstrakty

EN

This study investigates the impact of social and physical infrastructure spending on the non-oil tradable and non-tradable sectors while controlling for non-oil capital stock and employment in the Azerbaijani economy for the period 1995-2014. The analysis employs the Engle-Granger and Phillips-Ouliaris cointegration tests using FMOLS estimation results to test for the existence of long-run relationships. The tests results indicate the existence of long-run relationships among the variables. The estimation results reveal positive impacts of both social and physical infrastructure spending on non-oil tradable and non-tradable outputs. However, the impacts on the non-tradable sector are considerably larger than those on the non-oil tradable sector. Developing the non-resource tradable sector, and thereby reducing possibility of the "Resource Curse" and especially the Dutch Disease, is one of the strategic aims of natural resource-rich countries. In this regard, the findings of this research may be useful for Azerbaijani policymakers in taking measures that aim at fostering the development of the non-oil tradable sector, thereby avoiding possible negative outcomes of resource dependency such as the Dutch Disease. (original abstract)

Słowa kluczowe

EN

Social infrastructure; Social expenditures

PL

Infrastruktura społeczna; Wydatki socjalne

• Czasopismo: Contemporary Economics
• Rocznik: 2019
• Tom: 13
• Numer: nr 1
• Strony: 79--98

Twórcy

autor

Fakhri F. Hasanov

• King Abdullah Petroleum Studies and Research Center, Saudi Arabia; George Washington University, USA; Azerbaijan National Academy of Sciences

autor

Jeyhun I. Mikayilov

• King Abdullah Petroleum Studies and Research Center, Saudi Arabia; Institute for Scientific Research on Economic Reforms, Azerbaijan; Azerbaijan State University of Economics

autor

Sabuhi Yusifov

• Azerbaijan Technology University

autor

Khatai Aliyev

• Azerbaijan State University of Economics; Baku Engineering University, Azerbaijan; ASERC, Baku, Azerbaijan

autor

Samra Talishinskaya

• OJSC The International Bank of Azerbaijan, Azerbaijan; ADA University, School of Economics, Azerbaijan

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Identyfikatory

DOI

10.5709/ce.1897-9254.300