Diversification of the economy in the context of globalization (case of Azerbaijan)

Research background: Azerbaijan, as a country with rich mineral resources, faces macroeconomic difficulties due to income instability. In 2011-2013, during the period of high world oil prices, Azerbaijan began to diversify the economy and develop the non-oil sector at the expense of oil and gas expo...

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Main Authors: Ahmadova Esmira, Hamidova Lala, Hajiyeva Leyla
Format: Article
Language:English
Published: EDP Sciences 2021-01-01
Series:SHS Web of Conferences
Subjects:
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_07002.pdf
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author Ahmadova Esmira
Hamidova Lala
Hajiyeva Leyla
author_facet Ahmadova Esmira
Hamidova Lala
Hajiyeva Leyla
author_sort Ahmadova Esmira
collection DOAJ
description Research background: Azerbaijan, as a country with rich mineral resources, faces macroeconomic difficulties due to income instability. In 2011-2013, during the period of high world oil prices, Azerbaijan began to diversify the economy and develop the non-oil sector at the expense of oil and gas export revenues. The need to diversify the economy and export has become especially important in the conditions of increased global competition and the integration of the national economy into the world economy. Purpose of the article: The aim of the issue is assessment and study the characteristics of diversification of the economy of Azerbaijan, analyze the dependence of the country’s economic development on the degree of diversification of its economy and exports, assess the level of economic diversification of the country. Methods: To measure the level of diversification, we used indicators such as Herfindahl-Hirschmann export diversification index, and industry concentration in GDP. The originality and value of the research lies in revelation a number of indicators specific to the Azerbaijani economy that affect economic growth based on correlation-regression analysis and other econometric methods. According to econometric characteristics, the resulting model is adequate and confirms the empirical findings Findings & Value added: The results of the study showed that deeper diversification of the economy is required. To overcome oil dependence and conduct effective economic diversification, it is necessary to develop processing industries, expand the accessibility of small and medium enterprises to financial resources, and stimulate foreign investment in the non-oil sector.
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spelling doaj.art-0a14342486a341c09f03d2ec6ee131832022-12-22T03:14:51ZengEDP SciencesSHS Web of Conferences2261-24242021-01-01920700210.1051/shsconf/20219207002shsconf_glob20_07002Diversification of the economy in the context of globalization (case of Azerbaijan)Ahmadova Esmira0Hamidova Lala1Hajiyeva Leyla2Azerbaijan State University of Economics, Department of EconomicsAzerbaijan State University of Economics, Department of EconomicsAzerbaijan State University of Economics, Department of EconomicsResearch background: Azerbaijan, as a country with rich mineral resources, faces macroeconomic difficulties due to income instability. In 2011-2013, during the period of high world oil prices, Azerbaijan began to diversify the economy and develop the non-oil sector at the expense of oil and gas export revenues. The need to diversify the economy and export has become especially important in the conditions of increased global competition and the integration of the national economy into the world economy. Purpose of the article: The aim of the issue is assessment and study the characteristics of diversification of the economy of Azerbaijan, analyze the dependence of the country’s economic development on the degree of diversification of its economy and exports, assess the level of economic diversification of the country. Methods: To measure the level of diversification, we used indicators such as Herfindahl-Hirschmann export diversification index, and industry concentration in GDP. The originality and value of the research lies in revelation a number of indicators specific to the Azerbaijani economy that affect economic growth based on correlation-regression analysis and other econometric methods. According to econometric characteristics, the resulting model is adequate and confirms the empirical findings Findings & Value added: The results of the study showed that deeper diversification of the economy is required. To overcome oil dependence and conduct effective economic diversification, it is necessary to develop processing industries, expand the accessibility of small and medium enterprises to financial resources, and stimulate foreign investment in the non-oil sector.https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_07002.pdfeconomic diversificationexport diversificationazerbaijannon-oil sectornatural resources
spellingShingle Ahmadova Esmira
Hamidova Lala
Hajiyeva Leyla
Diversification of the economy in the context of globalization (case of Azerbaijan)
SHS Web of Conferences
economic diversification
export diversification
azerbaijan
non-oil sector
natural resources
title Diversification of the economy in the context of globalization (case of Azerbaijan)
title_full Diversification of the economy in the context of globalization (case of Azerbaijan)
title_fullStr Diversification of the economy in the context of globalization (case of Azerbaijan)
title_full_unstemmed Diversification of the economy in the context of globalization (case of Azerbaijan)
title_short Diversification of the economy in the context of globalization (case of Azerbaijan)
title_sort diversification of the economy in the context of globalization case of azerbaijan
topic economic diversification
export diversification
azerbaijan
non-oil sector
natural resources
url https://www.shs-conferences.org/articles/shsconf/pdf/2021/03/shsconf_glob20_07002.pdf
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AT hamidovalala diversificationoftheeconomyinthecontextofglobalizationcaseofazerbaijan
AT hajiyevaleyla diversificationoftheeconomyinthecontextofglobalizationcaseofazerbaijan