Econometric analysis of imports and exports between the Republic of Azerbaijan and the Republic of Italy

Abstract

Several factors make Azerbaijan an attractive partner for foreign countries. The nation's rich natural resources, strategic geographic location, openness to new and modern proposals, and continuously developing production sectors are clear examples. Additionally, time-appropriate strategic steps and reforms reinforce Azerbaijan's appeal. Currently, the Republic of Azerbaijan maintains strong and stable trade relations with European Union countries. Specifically, examining relations with Italy reveals that their interactions are primarily based on friendship and mutual respect. The growing trend of import and export operations between Azerbaijan and Italy suggests that both countries are conducting foreign policy in the right direction. The research analyzes the econometric trends of Azerbaijan-Italy import-export operations from 1992 to 2023. Econometric evaluation was conducted using EViews 8 software, applying methods such as graphical representation, regression equations, descriptive statistics, correlation coefficients, the Jarque-Bera test, the Dickey-Fuller test, the Granger causality test, and cointegration analysis.