Page 139 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

60 58
53.2
50
43.8
40
34.6 29.9
30
20.7
18.7 18.7 18.1
20
20.7 10.9
10
1.9 1.8 2.1 2.8 3 2.3 8.4 11.9 10.6 10.8
6.2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Public investment to GDP ratio Total investment to GDP ratio

Picture 5. Public investment to GDP ratio and total investment to
GDP ratio (%)

The stabilization of oil and gas extractions in recent years made the
further economic development dependant on the prosperity of the non-oil

sector. In this case economic development depends on not only investment

into the non-oil sector and change in the investment structure, but also
increase in investment ratio. The investment ratio in the country increased

from 20.7% in 2000 to 58% 2004 and decreased to 18.1% in 2010.
Decrease in the investment return rate negatively affects the economic

development in the country. According to the recent researches countries
with high investment returns experience high economic development. For

example, in 2010 this indicator in China, India and South Korea was

approximately equal to 50%, 35% and 30% respectively (World Bank,
World Databank). In our opinion, decrease in investment return has

significant impact on economic development of the country. Thus in 2005
the annual growth in GDP was equal to 26.4% in 2005, 34.5% in 2006,

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