Impact of Issued Loans on the Economic Growth of Azerbaijan

Abstract

Financial policy, which is an integral part of economic policy, is subdivided into financial strategy and tactics. This article examines the priorities of the latest credit and financial tactics and strategies of the Republic of Azerbaijan and shows how the country is solving the problem of acquiring financial resources, both for current needs and the economic and social development of society. The authors analyze the dependence of the resulting indicators of Azerbaijan’s economic growth on credit investments. Using a vector error correction model and Granger causality analysis based on monthly data from 2005–2019, they perform correlation and regression analysis to build econometric models that characterize the investigated dependence and provide a selection of significant econometric models, as well as an assessment of the results. The influence of financial progress on monetary development has frequently been a major worry. When financial crises arise, the relationship between financial business areas, financial crises, and monetary activity becomes paramount. The primary reason for this research is to identify the relationship between financial development and monetary advancement in the Azerbaijani economy.