Page 70 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 2, 2020, pp. 70-77

GROWTH PATTERNS AND DIVERSIFICATION ISSUES OF
THE NON-OIL EXPORT SECTOR IN AZERBAIJAN

Bahruz Babayev

Azerbaijan State University of Economics (UNEC)
Email: [email protected]; Tel: (+994 55) 981 06 15

Received October 15; accepted 10 December 2020; published online 28 December 2020

ABSTRACT:
This article discusses and analyzes recent trends and tendencies about growth
patterns and diversification issues of the non-oil export sector in Azerbaijan. Despite
the fact that Azerbaijan has enjoyed from the energy projects since its establishment
as an independent state in 1991, there is a need for the development of non-oil
export sectors to achieve the sustainable development of national economy.
Therefore, economic diversification has become a vital issue for Azerbaijan. The
government of Azerbaijan has adopted strategic roadmaps since 2016 that have
prioritized the development of agriculture, small and medium-sized businesses, as
well as the establishment regional transport corridors to diversify export revenues of
Azerbaijan and foster lasting growth. However, this article mentions that the reforms
must be continued consistently as Azerbaijan’s national economy has a still strong
reliance on the energy resources, namely crude oil.

Keywords: Economic Diversification, Non-oil sector, Tourism, Logistics, Business
development

JEL classification: F11, F14, F41, F43.

INTRODUCTION
Azerbaijan is a small country in the Caucasus with a population of ten million
people. Azerbaijan has an importance in the world energy market. The proven and
potential resources of the Azerbaijani sector of the Caspian Sea have played an
important role in terms of diversification, strengthening and stabilizing the world's
energy supply. It has land borders with Russia, Iran, Turkey, Georgia and Armenia,
and a sea border with the Caspian Sea. Azerbaijan is located on the transport links
between Europe and Asia and at the junction of the ancient Silk Road. Azerbaijan
has been known as a crude oil country since Soviet times. The country's main
natural resources are crude oil and natural gas. In addition, the country has gold
deposits, great tourism and transit potentials. Oil and fuel products produced in
Azerbaijan played an important role in providing the Soviet army with fuel during
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