Page 49 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 46-76

2012 and investigated their recent trend. In accordance with the purpose of the

research we provided the advices in respect of improvement of structure of the

industry, its optimization and competitiveness.

The development stages of industry in Azerbaijan

Industry is the most important force in Azerbaijani economy. This sector

employs 13.5% of labor forces of Azerbaijan and utilized 55.4% of assets

available. This sector accounts for 36.4% of attracted investments, 50% of gross

product and 64% of net income generated in the country.

During the period of transformation from planned to market economy (1990-

1996) the industrial production in Azerbaijan decreased to 28% of production in

1990 or by 3.5 times. Till 2010 further development of country was achieved by

the development of oil and gas sector. Development of this sector brought about

significant changes in structure of Azerbaijani economy. Although the production

level in this period was 2.8 times higher than that in 1990, the refinery related

volumes achieved only 45% of level indicated in 1990. Due to the fact that during

the post-crisis period the economy developed basically owing to this sector, the

portion of goods produced by this sector increased from 10.1% in 1990 to 79.8% in

2010. Thus the weighted average of production of good sector decreased from

26.6% to 1.4%, weaving production from 19.9% to 0.1%, production of machines

and vehicles from 20.3% to 0.9%, chemistry industry from 5.3% to 1%. At the

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