Sh. A. Abbasova, M.Sh. Orujova, T.V. Orujova. The econometric model of the influence of the volume of foreign investments on volume of GDP.

Abstract

The article is devoted to assessing the impact of foreign investments in Azerbaijan's economy in the GDP. The regression model assessing the impact of the volume of foreign investments in Azerbaijan's economy were built in the volume of gross domestic product. The results show that the constructed model is adequate and they can be used for prediction. On the whole, the inflow of foreign investment in the economy contributed to the unprecedented growth of gross domestic product (GDP). GDP is one of the main indicators characterizing the economic situation of the state, as well as an indicator of living standards: the higher the GDP, the higher the standard of living. Foreign investments have a positive impact on economic growth and therefore on the standard of living of the population. Attracting investments help to create new jobs in the recipient country, which has a direct impact on employment and reduces unemployment. Gross domestic product per capita, measured as a ratio of GDP at current prices to the population, is the main macroeconomic indicators. Gross domestic product per capita, measured as a ratio of GDP at current prices to the population, is the main macroeconomic indicators. However, it is direct investment ensured the development of new deposits and helped to create the necessary infrastructure for production and transportation of energy, and also laid the foundation for the development of non-oil sector. Thus, we can conclude that the constructed econometric model is adequate and can be used to forecast the main macroeconomic indicators characterizing economic growth.