Page 109 - Azerbaijan State University of Economics

Nazim U. Hajiyev: Assessment stages of cyclical development of monopoly and
competition in terms of the reconstruction of Azerbaijan economy

for expansion of specialization of production, to develop cooperation and

combination within the vertical face of technology covering preparation of raw

material production, primary processing of raw materials, various intermediate products

and etc.

This served to create the necessary organizational and manufacturing floors

for application methods of mass conveyor production and increasing role of

vertical type of concerns. Powerful industrial complexes are being formed covering

a wide range of companies associated with each other in a single

technological stage. The basis of establishment of such complexes formed based

specialization of fabrics forming complexes (on the object, on parts and on the

technology) [Martynovsky S.V. 1985. 10, s. 75-79].

But development of concentration and centralization of production led to

the collapse of the market self-regulation mechanism. This clearly reflected itself

during the economic crisis of 1929-1933 years. “Great Depression”, laid for the

foundation for intensive regulation of economy by the state in accordance with the

recommendations of Keynes. Objective need of regulation of economy by the state,

as a result have been created with the process of centralization of production in

monopoly coalition. Considering that the economy was manipulated by

competition with “invisible hand” of market the liberal ideas were

considered outdated.

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