Page 70 - Azerbaijan State University of Economics

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

during the preparation of innovation strategy it is important to identify the priority

sectors and their opportunities.

Nowadays the process of development of the industry and its competitiveness

requires the government to support the new technologies, increase the quality of

produced goods and decrease its cost of production and implementation of

necessary measurements. These measurements should be implemented both on

macro and micro-economic level, because increase in competitiveness is based on

efficient utilization of the resources. Due to the successful implementation of oil

strategy the government of Azerbaijan has vast opportunities for improvement of

industrial structure and competitiveness.

Financing of the companies for technological development plays important

role in government policy on improvement of competitiveness. During the

preparation of industrial policy we should consider the encouraging and

distribution functions of taxes. The level of taxation significantly impacts the cost

of the manufactured goods and its competitiveness.

The decrease of tax burden plays the positive role in economic growth. At the

same time the competitiveness of the industry depends on efficient utilization of

the resources by the government. Therefore we should identify the optimal level

between the tax burden and benefits provided to the public.

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