Page 127 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

particular areas. During the estimation of investment private sector

considers the products to be produced, required raw materials and their
provision, realization markets, organization of the production, its volumes

and type of applied technologies, financing schemes, the risk level and other
points. The lack of knowledge in this realm limits the realization of the

investment projects. In most of cases this factor affects the investment more

than the capital shortage. In relatively complex realms the evaluation of the
investment projects and their realization requires more experience and

knowledge. Lack of capital resources and knowledge limits implementation
of large and long-term projects in the private sector. In such conditions the

role of the government in development of specific areas and realms of the

economy is exceptional. The government encourages the development of
particular areas and at the same time participates in the production activities.

From this point of view preparation of programs for development of
complex realms of national economy and their realization is necessary.

Such works are implemented in Azerbaijan as well.
The dynamics of public investment in Azerbaijan and their role in

economic development

In the recent years increase in oil revenue creates an opportunity to
finance the majority of the investment programs at account of these

revenues. Thus in 2010 the consumer price index increased 2 times in
comparison with 2000, while nominal amount of gross disposable income

increased by 7.9 times, nominal amount of gross disposable income of the
general government increased by 33 times in nominal terms within the

indicated period. As a result, the share of the general government in the

gross disposable income increased from 10% in 2000 to 42% in 2010. In
general, during the period from 2006 till 2010 sum total of general

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