Factors Affecting Product Supply in the Domestic Agrarian Market in Azerbaijan

Abstract

The purpose of the study was to study, analyze, evaluate and forecast the factors affecting the formation of product supply in the domestic agrarian market. Socio-economic aspects of the factors influencing the growth of product supply in agrarian market in the country were considered for the purpose of the research. Statistical and econometric analysis was carried out by the method of generalization, grouping, systematic approach, the role and place of factors influencing the growth of product supply in agrarian market. The methodology used is based on econometric analysis of time series. The first step involves the formation of an order of integration of variables included in the model and utilizing several unit root tests such as the Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) tests. The cointegration approach is based on the ARDL model and the boundary test. The relative volatility of some indicators, which indirectly depends on oil prices, has led to some limitations in the study. The originality of the research is a complex statistical and econometric analysis of the factors influencing the increase of product supply in the domestic agricultural market, and the scientific novelty is the determination of the dependence of product supply in the agricultural sector on government support, including investment. The application of the article in the development of this section on the impact of agricultural supply on food security is of practical importance.