Page 32 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.72, # 2, 2015, pp. 32-42

ECONOMIC DIVERSIFICATION POLICY IN CONTEXT OF
AZERBAIJAN'S ACCESSION TO THE WTO

Vugar Bayramov

Ph.D., ASEU
Email: [email protected] Tel: (012) 5970691

Abstract
The main objective of this article is the analysis of the accession of Azerbaijan to the
WTO, the advantages and disadvantages associated with this accession, the
macroeconomic effects, CGE modeling, and analyzing the outcomes obtained
through endogenous combinations. This paper will also enable to determine the
positive influential elements as a result of the WTO accession, the changes in tariffs
during import and export, and the impact on the domestic entrepreneurial entities and
employment.

Key words: WTO, macroeconomic effects, CGE modeling, import and export,
entrepreneurship, employment.
JEL classification: F13, L25,

As a Republic of the Soviet Union, Azerbaijan has experienced the economic
integration to the common market for 70 years. The disbandment of the Soviet Union,
and Azerbaijan gaining sovereignty and independence over its resources and market
was seen as a historic achievement by many. Azerbaijan started its way of progressing
toward a free market economy in a turbulent economic environment. The difficulties
accompanied by the detaching from a common economic area - high figures of inflation,
rapidly declining levels of production, a lack of food, high unemployment and a general
decrease in welfare - can be one of the reasons explaining the negative perception of
greater integration into the multilateral trade system.
In this context, the in-depth analyses of the WTO accession is needed to
understand the advantages and disadvantages of the WTO accession in Azerbaijan.
The similar analyses were carried out for the CIS country group on the political and
economic consequences (see for instance Bayramov 2008; Tumbarello 2005;
Roberts and Wehrheim 2001). There also similar papers of qualitative studies

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