Analysis of the impact of Azerbaijan's direct investments on Turkey's energy sector on the economy of both countries

In the thesis study, investments and their effects on the economy and their roles in the economy, the theoretical and methodological foundations of foreign investment in the market economy, the contribution and effects of foreign direct capital to the economy, foreign investments in the economy of Azerbaijan were examined. The role of Azerbaijan's investments in the Turkish energy sector in Azerbaijan-Turkey economic relations has been evaluated. A practical analysis of the effects of Azerbaijan's direct investments in Turkey's energy sector on the economies of both countries is included. The aim of this study is to analyze the effect of foreign direct investments in the energy sector on Azerbaijan and Turkey and to determine the effect of these investments on GDP. The data used covers the years 1995-2021. In the study, an econometric model was established, VAR model and regression analysis were performed. In conclusion, it can be noted that Azerbaijan's foreign direct investments in Turkey have a positive impact on the gross domestic product and general economy of both countries. As a result of the tests, increase in foreign direct investment results in a positive increase in GDP in Turkey and Azerbaijan.