DOI: https://doi.org/10.36719/2706-6185/49/129-134
Aida Rufiyeva
Azerbaijan University
Master student
https://orcid.org/0009-0005-5602-2174
jale-999@mail.ru
Impact of Tax Level on Economic Growth by Sectors in Azerbaijan
(2014–2023): Statistical Analysis
Abstract
This paper investigates the impact of taxation levels on the economic growth of key sectors in Azerbaijan over the period 2014–2023. The analysis focuses on five main sectors: oil and gas, agriculture, manufacturing, construction, and services. Using annual data from national and international sources, including the State Statistical Committee of Azerbaijan, IMF, and OECD, we construct a sector-specific panel dataset covering corporate income tax (CIT), value-added tax (VAT), and personal income tax (PIT). Regression analysis is applied to assess how these taxes, as a share of GDP or sectoral value added, have influenced real growth in each sector. The results demonstrate that the oil and gas sector, while generating most tax revenues, shows weak sensitivity to domestic tax policies, being more responsive to global oil prices and production constraints. In contrast, non-oil sectors exhibit measurable responses to tax burden changes. These findings underline the importance of differentiated tax policies and targeted reforms in supporting Azerbaijan’s economic diversification efforts away from oil dependency.
Keywords: Azerbaijan, taxes, sectoral growth, corporate tax, regression analysis