Farid Jabiyev

Department of Economics, Baku Engineering University, 

Karabakh Economic Research Center, 

Azerbaijan State University of Economics (UNEC), 

Azerbaijan

fcebiyev@beu.edu.az

ORCID 0000-0002-6675-0264

The relationship between public debt and economic growth: The case of Azerbaijan

Aghamir Asgarov

Department of Finance and Accounting, Baku Engineering University, Azerbaijan

aesgerov@beu.edu.az

ORCID 0000-0002-8355-2649

Tutu Heydarli

Department of Economics, Baku Engineering University, Karabakh Economic Research Center, Azerbaijan State University of Economics (UNEC),

Azerbaijan

theydarli@beu.edu.az

ORCID 0000-0003-3532-8105

Abstract. This study investigates the relationship between public debt and economic growth in Azerbaijan by applying FMOLS model to data from 1995 to 2020. The findings of the study show that government debt negatively affects economic growth. They also indicate that a 1% growth in export and real exchange rate increases GDP by 0.209% and 0.202%, respectively. The results of this study are useful for policymakers and they advance the economic literature to facilitate further research into developing oil-rich countries.

Received: November, 2021

1st Revision: August, 2022

Accepted: December, 2022

DOI: 10.14254/2071-8330.2022/15-4/13

JEL Classification: F43, H63, H68

Keywords: public debt, economic growth, FMOLS, Azerbaijan