Page 60 - Azerbaijan State University of Economics

Gulbaniz T. Aliyeva: The issues related to formation of competitive structure of industry in Azerbaijan

competitors, it brought about decrease in salaries and slows down of economic

development. Therefore in more complex sectors maintenance of competitive

advantages provides the grounds for economic development. In cases when

competitiveness of the products is based on quality and prices its competitive

advantages are also based on prices and quality. According to analysis performed

by the World Bank and World Trade Organization for 183 countries, although the

oil and gas related products of Azerbaijan has great competitive advantages, new

products produced during the recent years like fruit and vegetable juices, refined

tobacco, fur and leather, refined cotton, cotton oil, seafloor oil turned into the

competitive products on world-wide market. At the same time the products made

by the chemistry industry like politer, propylene and plastic have also competitive

advantages. On other hand the products of non-oil industry like pumps, liquid

elevators, gas/water/electricity meters, towing ships, magnate strips and etc. have

also competitive advantages. Considering all above mentioned factors we came to

conclusion that Azerbaijani industry can develop sectors other that oil and gas

industry and gain competitive advantage there. At the same time developing of

chemistry industry will provide an opportunity to produce other diversified

products. Therefore the government supports the production of goods with

competitive advantages, encourages their export and applies necessary

measurements for the limitation of import of these products.

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