Research Article
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ASSESSMENT OF THE IMPACT OF INFLATION ON THE SOCIAL WELFARE IN THE REPUBLIC OF AZERBAIJAN

Year 2025, Volume: 7 Issue: 1, 96 - 112, 12.01.2025
https://doi.org/10.55050/sarad.1593428

Abstract

The foundation of every country's socio-economic policy is the improvement of the social welfare. Improving the social welfare is directly dependent on the state's intervention in the economy. The government promotes social welfare by regulating the economy both directly and indirectly. However, merely increasing wages, pensions, allowances, and so on is not enough to raise social welfare. This is because such increases may lose their value due to the effects of high inflation. Therefore, in addition to working to increase incomes, the government must also keep inflation under control. This article evaluates the changes that have occurred in recent years in Azerbaijan's population's social situation, as well as in the structure of household income and expenditure. The impact of inflation on the population's social situation, including money incomes (wages, pensions, allowances, etc.), is also analyzed. As a result of the analysis, it was determined that in recent years, a positive trend has been observed in the social situation of the population in Azerbaijan. Specifically, the income of the population, including wages, pensions, benefits, etc., has increased, and the levels of poverty and unemployment have decreased significantly. However, a large portion of the population's income has been directed towards consumption expenditures. In other words, the expenses directed towards savings have been minimal.

References

  • Abdullayeva, D. (Ed.). (2007). Alternativ infilyasiya: Beynəlxalq təcrübə və Azərbaycan [Alternative inflation: International experience and Azerbaijan]. İqtisadi Tədqiqatlar Mərkəzi. https://ercenter.eu/files/neshrler/KITAB_inflyasiya.pdf
  • Ali, A. K., & Asfaw, D. M. (2023). Nexus between inflation, income inequality, and economic growth in Ethiopia. PLOS ONE, 18(11), e0294454–e0294454. https://doi.org/10.1371/journal.pone.0294454
  • Bobasu, A., Di Nino, V., & Osbat, C. (2023). The impact of the recent inflation surge across households. Www.ecb.europa.eu, 2023(3). https://www.ecb.europa.eu/press/economic-bulletin/articles/2023/html/ecb.ebart202303_02~037515ed7d.en.html
  • CBAR. (2023). Pul siyasəti icmalı [Monetary policy review]. Central Bank of Azerbaijan. https://uploads.cbar.az/assets/02013a6889281a5f272c2063b.pdf
  • Charalampakis, E., Fagandini, B., Henkel, L., & Osbat, C. (2022). The impact of the recent rise in inflation on low-income households. Www.ecb.europa.eu, 2022(7). https://www.ecb.europa.eu/press/economic-bulletin/focus/2022/html/ecb.ebbox202207_04~a89ec1a6fe.en.html
  • Dorrance, G. S. (1963). The Effect of Inflation on Economic Development. IMF Staff Papers, 1963(001). https://doi.org/10.5089/9781451956023.024.A001
  • Eurostat. (2023). Housing, food & transport: 61% of households’ budgets. Eurostat News. Retrieved from https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230327-2
  • Farhadoglu, T. (2022). Azərbaycanda rəsmi qurumlar inflyasiyanın 13 faiz, müstəqil ekspert isə 25 faiz olduğunu bildirir [Official institutions in Azerbaijan report inflation at 13 percent, while independent experts say it is 25 percent.]. Voice of America; Amerikanın Səsi. https://www.amerikaninsesi.org/a/6697309.html
  • Frick, W. (2022). What Causes Inflation? Harvard Business Review. https://hbr.org/2022/12/what-causes-inflation
  • Ghosh, J. (2023). The social consequences of inflation in developing countries. Economic and Labour Relations Review, 34(2), 203–211. https://doi.org/10.1017/elr.2023.11
  • Harcourt, G.C. (2001). The Social Consequences of Inflation. In: Selected Essays on Economic Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230510562_13
  • Hasanli, Y., & Hasanov, R. T. (2002). İqtisadi tədqiqatlarda riyazi üsulların tətbiqi [Application of mathematical methods in economic research]. Baku, p. 318
  • Jayashankar, A., & Murphy, A. (2023). High inflation disproportionately hurts low-income households. Www.dallasfed.org; Federal Reserve Bank of Dallas. https://www.dallasfed.org/research/economics/2023/0110
  • Kolodko, W.G. (1989). Social and Political Aspects of Inflation. A journal of translations. https://tiger.edu.pl/kolodko/artykuly/Social_and_Political.pdf
  • Mckinsey, (2024). “What Is Inflation: The Causes and Impact.” Mckinsey & Company, www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-inflation.
  • Panizza, U. (2002). Income Inequality and Economic Growth: Evidence from American Data. Journal of Economic Growth, 7(1), 25–41. https://doi.org/10.1023/a:1013414509803
  • Reserve Bank, (2023). Causes of Inflation. Reserve Bank of Australia, www.rba.gov.au/education/resources/explainers/causes-of-inflation.html
  • Silva, A. F. (2022). Inflation Inequality: inflation effects on different social classes. Center for Advanced Studies on Applied Economics. https://www.cepea.esalq.usp.br/en/opinion/inflation-inequality-inflation-effects-on-differ ent-social-classes.aspx
  • SSCAR. (2024a). Price and tariff indexes. The State Statistical Committee of the Republic of Azerbaijan. https://www.stat.gov.az/source/price_tarif/?lang=en
  • SSCAR. (2024b). System of national accounts and balance of payments. The State Statistical Committee of the Republic of Azerbaijan. https://www.stat.gov.az/source/system_nat_accounts/?lang=en
  • UC DAVIS. (2022). The Impact of Inflation and Recession on Poverty and Low-Income Households - Office of Research. Ucdavis.edu. https://research.ucdavis.edu/impact-of-inflation-and-recession-on-poverty-and-low-income-households/
  • USDA. (2024). Food accounted for 13.0 percent of American households’ expenditures in 2019. www.ers.usda.gov. https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=58276
  • Zadornov, М. (2003). Инфляция и валютная политика [Inflation and monetary policy]. Вопросы экономики, (12), 12–31. p. 13

AZERBAYCAN CUMHURİYETİ'NDE ENFLASYONUN SOSYAL REFAH ÜZERİNDEKİ ETKİSİNİN DEĞERLENDİRİLMESİ

Year 2025, Volume: 7 Issue: 1, 96 - 112, 12.01.2025
https://doi.org/10.55050/sarad.1593428

Abstract

Her ülkenin sosyo-ekonomik politikasının temeli, nüfusunun sosyal refahının yükseltilmesidir. Nüfusun sosyal refahının yükseltilmesi doğrudan devletin ekonomiye müdahalesine bağlıdır. Hükümet, ekonomiyi hem doğrudan hem de dolaylı olarak düzenleyerek sosyal refahı teşvik eder. Ancak yalnızca ücretlerin, emekli maaşlarının, ödeneklerin vb. arttırılması sosyal refahın arttırılması için yeterli değildir. Çünkü bu tür artışlar yüksek enflasyonun etkisiyle değerini kaybedebilir. Bu nedenle hükümetin gelirleri artırmaya yönelik çalışmalarının yanı sıra enflasyonu da kontrol altında tutması gerekiyor. Bu makale, son yıllarda Azerbaycan nüfusunun sosyal refahında, hane geliri ve harcama yapısında meydana gelen değişiklikleri değerlendirmektedir. Enflasyonun, para gelirleri (ücretler, emekli maaşları, ödenekler vb.) dahil olmak üzere nüfusun sosyal refahı üzerindeki etkisi de analiz edilmektedir. Analiz sonucunda son yıllarda Azerbaycan'da nüfusun sosyal durumunda olumlu bir eğilim gözlendiği tespit edilmiştir. Özellikle, ücretler, emekli aylıkları, sosyal yardımlar vb. dahil olmak üzere nüfusun geliri yükselmiş ve yoksulluk ve işsizlik seviyeleri önemli ölçüde azalmıştır. Ancak nüfusun gelirinin büyük bir kısmı tüketim harcamalarına yönlendirilmiştir. Yani tasarrufa yönelik harcamalar minimum düzeyde olmuştur.

References

  • Abdullayeva, D. (Ed.). (2007). Alternativ infilyasiya: Beynəlxalq təcrübə və Azərbaycan [Alternative inflation: International experience and Azerbaijan]. İqtisadi Tədqiqatlar Mərkəzi. https://ercenter.eu/files/neshrler/KITAB_inflyasiya.pdf
  • Ali, A. K., & Asfaw, D. M. (2023). Nexus between inflation, income inequality, and economic growth in Ethiopia. PLOS ONE, 18(11), e0294454–e0294454. https://doi.org/10.1371/journal.pone.0294454
  • Bobasu, A., Di Nino, V., & Osbat, C. (2023). The impact of the recent inflation surge across households. Www.ecb.europa.eu, 2023(3). https://www.ecb.europa.eu/press/economic-bulletin/articles/2023/html/ecb.ebart202303_02~037515ed7d.en.html
  • CBAR. (2023). Pul siyasəti icmalı [Monetary policy review]. Central Bank of Azerbaijan. https://uploads.cbar.az/assets/02013a6889281a5f272c2063b.pdf
  • Charalampakis, E., Fagandini, B., Henkel, L., & Osbat, C. (2022). The impact of the recent rise in inflation on low-income households. Www.ecb.europa.eu, 2022(7). https://www.ecb.europa.eu/press/economic-bulletin/focus/2022/html/ecb.ebbox202207_04~a89ec1a6fe.en.html
  • Dorrance, G. S. (1963). The Effect of Inflation on Economic Development. IMF Staff Papers, 1963(001). https://doi.org/10.5089/9781451956023.024.A001
  • Eurostat. (2023). Housing, food & transport: 61% of households’ budgets. Eurostat News. Retrieved from https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230327-2
  • Farhadoglu, T. (2022). Azərbaycanda rəsmi qurumlar inflyasiyanın 13 faiz, müstəqil ekspert isə 25 faiz olduğunu bildirir [Official institutions in Azerbaijan report inflation at 13 percent, while independent experts say it is 25 percent.]. Voice of America; Amerikanın Səsi. https://www.amerikaninsesi.org/a/6697309.html
  • Frick, W. (2022). What Causes Inflation? Harvard Business Review. https://hbr.org/2022/12/what-causes-inflation
  • Ghosh, J. (2023). The social consequences of inflation in developing countries. Economic and Labour Relations Review, 34(2), 203–211. https://doi.org/10.1017/elr.2023.11
  • Harcourt, G.C. (2001). The Social Consequences of Inflation. In: Selected Essays on Economic Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230510562_13
  • Hasanli, Y., & Hasanov, R. T. (2002). İqtisadi tədqiqatlarda riyazi üsulların tətbiqi [Application of mathematical methods in economic research]. Baku, p. 318
  • Jayashankar, A., & Murphy, A. (2023). High inflation disproportionately hurts low-income households. Www.dallasfed.org; Federal Reserve Bank of Dallas. https://www.dallasfed.org/research/economics/2023/0110
  • Kolodko, W.G. (1989). Social and Political Aspects of Inflation. A journal of translations. https://tiger.edu.pl/kolodko/artykuly/Social_and_Political.pdf
  • Mckinsey, (2024). “What Is Inflation: The Causes and Impact.” Mckinsey & Company, www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-inflation.
  • Panizza, U. (2002). Income Inequality and Economic Growth: Evidence from American Data. Journal of Economic Growth, 7(1), 25–41. https://doi.org/10.1023/a:1013414509803
  • Reserve Bank, (2023). Causes of Inflation. Reserve Bank of Australia, www.rba.gov.au/education/resources/explainers/causes-of-inflation.html
  • Silva, A. F. (2022). Inflation Inequality: inflation effects on different social classes. Center for Advanced Studies on Applied Economics. https://www.cepea.esalq.usp.br/en/opinion/inflation-inequality-inflation-effects-on-differ ent-social-classes.aspx
  • SSCAR. (2024a). Price and tariff indexes. The State Statistical Committee of the Republic of Azerbaijan. https://www.stat.gov.az/source/price_tarif/?lang=en
  • SSCAR. (2024b). System of national accounts and balance of payments. The State Statistical Committee of the Republic of Azerbaijan. https://www.stat.gov.az/source/system_nat_accounts/?lang=en
  • UC DAVIS. (2022). The Impact of Inflation and Recession on Poverty and Low-Income Households - Office of Research. Ucdavis.edu. https://research.ucdavis.edu/impact-of-inflation-and-recession-on-poverty-and-low-income-households/
  • USDA. (2024). Food accounted for 13.0 percent of American households’ expenditures in 2019. www.ers.usda.gov. https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=58276
  • Zadornov, М. (2003). Инфляция и валютная политика [Inflation and monetary policy]. Вопросы экономики, (12), 12–31. p. 13
There are 23 citations in total.

Details

Primary Language English
Subjects Applied Economics (Other)
Journal Section Research Article
Authors

Resmiyye Abdullayeva 0000-0003-1625-1093

Elnur Zeynallı 0009-0002-2400-4658

Early Pub Date January 10, 2025
Publication Date January 12, 2025
Submission Date November 29, 2024
Acceptance Date January 10, 2025
Published in Issue Year 2025 Volume: 7 Issue: 1

Cite

APA Abdullayeva, R., & Zeynallı, E. (2025). ASSESSMENT OF THE IMPACT OF INFLATION ON THE SOCIAL WELFARE IN THE REPUBLIC OF AZERBAIJAN. Sağlık Ve Sosyal Refah Araştırmaları Dergisi, 7(1), 96-112. https://doi.org/10.55050/sarad.1593428


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