Page 98 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

• Financial stimulation of the companies/firms which are willing to

establish their business in the regions. For these purposes following tools
can be used: investment grants, lending at low interest rates, tax releases

or partial tax payments, release from rental payments and etc.

• Transfer of production units from the central offices to
developing regions, towns or agglomerations;

• Investment into transportation network and the realms affecting

living standards of the population.
There is close relation between aims of governmental bodies and

goals of the regional policy. Therefore before considering the aims of
regional policy, let’s look at aims of economic development, current and

expected position of the region in state’s economy. The main purpose of
the regional policy is utilization of scarce resources at maximum

economy, benefiting from labor segregation between the regions and

agglomerations. In social realm the main purpose of the regional policy
is provision of normal life standards for all citizens of the country,

opportunity to carry out business activities, right to choose the place for
living and working, elimination of internal social tension.

While application of cluster approach at the stage of transfer to
market relations following important tasks are set behind the government

of Azerbaijan Republic. They are following:

1. Establishment of continues development of the economy in
conditions when regions are equally developed; in this case the success of

regional policy should be by level of development achieved in the regions;

2. Development both in center and regions suitable for Azerbaijan
reality post-industrial society, where market relations are based on multi-

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