Page 49 - Azerbaijan State University of Economics

Umudvar Q.Aliyev, Gunay U.Guliyeva: Explorıng Economıc Expansıon In Azerbaıjan’s Natıonal Economy

The integration of the agricultural sector in Azerbaijan’s recently liberated territories
is poised to play a pivotal role in tackling these challenges. Expanding both the
geographical and economic scope of agricultural activity enhances the prospects for
achieving food security. The liberated regions offer fertile lands, abundant forests,
natural meadows, mountain rivers ideal for high-quality fishery production, and
opportunities to cultivate ecologically pure products. These resources will facilitate
the reintegration of the region into the national economy, strengthening and
diversifying it. This development is expected to reduce reliance on imported
agricultural goods, thereby bolstering food security.
Economic expansion drives structural transformations within Azerbaijan’s national
economy. As the economy’s structure strengthens, the composition of exports is also
poised to improve. In line with Azerbaijan’s commitments at COP28 and COP29 (UN
Climate Change Conferences) to reduce carbon emissions by 40–60% over the next
10–15 years, the country is pursuing a policy to green its economy. This shift will
bring about qualitative improvements, notably by expanding green energy
production—an area where Azerbaijan holds significant potential. This policy will not
only satisfy a substantial share of energy needs across diverse economic sectors but
also position Azerbaijan as a dependable supplier of green energy to European
countries. (Preliminary memoranda of understanding have already been signed with
several European nations.)

CONCLUSION
Azerbaijan’s economic expansion integrates geographical restoration, international
connectivity, and sustainability, distinguishing it from growth-centric models. Oil
initially fueled expansion, with the "Contract of the Century" and pipelines driving
GDP and reserves. Post-2020 liberation and diversification—via non-oil sectors,
green energy, and transport corridors—signal a shift toward resilience. Unlike large
states’ exploitative strategies, Azerbaijan leverages its modest scale for security,
efficiency, and cooperation, aiding smaller states with financial support. Challenges
like oil dependency and food imports persist, but liberated territories and green
policies offer solutions. Future research should explore the long-term sustainability of
these efforts, balancing resource wealth with structural transformation.

REFERENCES:

Abdelkawy, N. A. (2024). Diversification and the resource curse: An econometric
analysis of GCC countries. Economies. https://www.scopus.com/record/display.
uri?eid=2-s2.0-85208592088&origin=scopusAl

Acemoglu, D. (2009). Introduction to modern economic growth. Princeton University
Press.

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