Cointegration analysis of mutual influence of GDP and investments in fixed capital of the Republic of Azerbaijan

In the article to analyse the long-term links between GDP and investment of the Republic of Azerbaijan based on quarterly data for 2010-2020, a long-term equilibrium state model and a short-term error correction model were designed. With the help of cointegration analysis and a vector model, the long-term and short-term aspects of the links between the growth of the money supply and the increase in the price level are investigated. Using the various methods showed that the dynamics investment determines the growth of the GDP in Azerbaijan both in the long-term and in the short-term periods.