Page 101 - Azerbaijan State University of Economics

Orkhan Dadashov: The Effect of Foreign Direct Investment on Azerbaijan’s Non-Oil GDP

In conclusion, taxes and regulations play a crucial role in determining the
attractiveness of a country as an investment destination. Azerbaijan has implemented
various tax and regulatory measures to attract foreign investment and promote
economic growth, including DTAs, transfer pricing regulation, and CRS. These
measures help to create a favorable investment environment by reducing the cost of
doing business for foreign investors and promoting transparency.

Inferential Analysis:
In this part, we will pay attention to the statistical relationship between foreign direct
investments and Azerbaijan's non-oil GDP based on data taken from the World Bank
website.

Chart 1: Relationships between FDI inflows and Azerbaijan’s Non-Oil GDP

Source: The chart was prepared by author based on the data taken from the World
Bank website

Based on the secondary data and the impact of FDİ İnflows on Azerbaijan’s Non-Oil
GDP growth, some possible hypotheses are:
Alternative hypothesis (HA): Foreign direct investment has a positive impact on
Azerbaijan's non-oil GDP.

Null hypothesis(H0): There is no significant relationship between the level of FDI
inflows on Azerbaijan's non-oil GDP growth.

To analyze the statistical relationship between FDI inflows and Azerbaijan's non-oil
GDP, correlation, and regression analysis should be used.

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