Estimation of import demand: The case of Azerbaijan

International economic relations between countries are reaching a new peak every coming day thanks to globalization. One of the most important parts of these relations is the trade, which policymakers should scrutinize. Considering natural resource-rich economies within the Dutch disease framework, understanding demand for imported goods could be very useful for policy purposes. This research aims to estimate the import demand function of an oil reach country – Azerbaijan Republic. This research examines the relationship between import and GDP and exchange rate by using cointegration techniques for 1999-2014. Research findings reveal that there is a long term causality from GDP and exchange rate to imports of Azerbaijan. It must also be stated that the directions of effects of both GDP and exchange rate are consistent with what economic theory states.