Page 104 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

investment activity. At the same time low living standards can be

accompanied with stable industry and investment environment.
3. Depressive regions. The opportunities of these regions to be

developed by the means of internal forces are limited. Depressive
regions are not only agricultural ones; depressive can be also regions

with high unemployment and migration.

Classification and gradation of the regions in this manner play
important role in investment decision making and realization of

investment project.
The principles of the regional policy play important role in

organization and implementation regional economic projects. In

Azerbaijan these principles are based on internal and external factors and
consist of following points:

• Ecologic protection of Azerbaijan Republic and based on this
approach complex resolution of problems in the regions. The protection of

ecology is based on traditional utilization of natural resources;

• Regional specialization. This principal should reflect the
technical and investment policy of the country and infrastructure should

be adjusted accordingly.
• Utilization of advanced forms of public production and

quantified personnel during allocation.

• Formation of equal institutional conditions for all regions,
elimination of differences in social and ecological differences in

structure of the region.

According to published articles and researches during the
transition period to market relations significant discrepancies in

development of the regions took place. As per conclusions from these

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