Open AccessOIL DEPENDENCE OF POST-SOVIET COUNTRIES IN THE CASPIAN SEA REGION: THE CASE OF AZERBAIJAN AND KAZAKHSTAN
Author(s) -
Katarzyna Czech
Publication year - 2018
Publication title -
acta scientiarum polonorum. oeconomia
Language(s) - English
Resource type - Journals
eISSN - 2450-047X
pISSN - 1644-0757
DOI - 10.22630/aspe.2018.17.3.32
Subject(s) - revenue , economics , economic rent , soviet union , exchange rate , international economics , petroleum , international trade , economy , monetary economics , market economy , political science , chemistry , organic chemistry , politics , law , accounting
The aim of the research is to present oil dependence of Azerbaijan and Kazakhstan from 2000 till 2017. The analysed countries represent two former Soviet Union countries in the Caspian Sea region and are among the world’s top 15 oil dependent economies. It is shown that both countries generate high oil rents to GDP ratios. Moreover, the paper reveals that their fuels export constitutes a huge portion of total merchandise export. It implies that majority of Azerbaijani and Kazakhstani export revenues come from resources extraction. The empirical analysis of co-movements between the crude oil prices and chosen macroeconomic indicators shows that correlation between oil prices and Kazakhstani and Azerbaijani public debt to GDP ratios is negative, strong and significant. In addition, there is significant relationship between oil prices and Kazakhstani exchange rate and GDP growth rate.