Evaluation of fiscal policy impact on economic growth: The case of Azerbaijan

This research investigates the impact of fiscal policy on non-oil economic growth in case of Azerbaijan. Authors apply Johansen Cointegration test and Vector Error Correction Model (VECM) over the period of 2000Q1- 2017Q3 for estimating impact of budget revenues and expenditures on non-oil economic growth. Our results suggest that there is negative impact of budget revenues on GDP. However, Positive relationship was found between budget expenditures and GDP. Results coincide with findings obtained from other researches and can be used for different purposes by researchers and policy-makers.