Page 76 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

methodology. Section 4 discusses the empirical results. Finally, Section

5 concludes.

2. Data

There are 5 primary variables in the model described in this study:
exports (X), imports (IM), real bilateral exchange rate (RFX), domestic

demand (Y az), and foreign demand (Y eur). Exports are Azerbaijan’s non-
oil exports to the Eurozone denominated in Manats. The graph below

represents the over-time trend of the variable:

Source: Institute for Fiscal Studies (IFS)

Imports are Azerbaijan’s total bilateral imports from the
Eurozone denominated in Manats. Again, the dynamics of the variable

can be best observed in a graph:

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