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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

All these factors hamper the process of identification of the public

investments. Therefore in current article we used the classification of the
Organization for Economic Co-operation and Development and added

other investments made by the public organizations and institutions.
According to the implemented researches we have identified the

major part of national savings is under the public control. Decrease in

flow of foreign investments and limited opportunities of local private
sector brought about decrease in investment return. This decrease also

influenced by the increase of public investments. In our opinion, services
and production, governmental and non-governmental sectors should be

developed in accordance with each other. From this point of view, along

with expansion of its investment activity, the government should
encourage the collaboration with private sector as well.

References

1. Annual Report of Azerbaijan State Oil Fund in 2010, Baku:
2010.(In Azerbaijani).
2. David Alan Aschauer. Public Investment and Private Sector
Growth. The Economic Benefits of Reducing America’s
“Third Deficit”. Washington: Economic Policv Institute, 1990.
3. Douglas Sutherland, Sonia Araujo, Balázs Égert, Tomasz
Kozluk. (2009). Infrastructure investment: links to growth and
the role of public policies. Economics Department Working
Paper No. 686 ECO/WKP(2009)27.
4. National Accounts of Azerbaijan: 2012. Statistic yearbook.
Baku: 2012. (In Azerbaijani).
5. OECD Regions at a Glance 2011, OECD Publishing., 2011.
6. Pietro Toigo, Robert Woods. Public Investment in the United
Kingdom / OECD Journal on Budgeting, 2006, Volume 6 –
No. 4.
7. Rules on establishment, execution, monitoring and evaluation
of the Public Investment Program, 17 march 2010.

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