Page 34 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 23-45
our opinion, specialization of the regions over the specific type of product will
bring about additional efficiencies. For example, production of tropic fruits in
Lankaran-Astara, production of grape and wine in Jalilabad and Ganja-Gazakh,
vegetable-growing in Lankaran-Astara, Guba-Khachmaz and other regions,
gardening in Guba-Khachmaz, Sheki-Zaqatala. For example in order to develop
the apple production in Guba-Khazmaz region we need increase the area of apple
gardens, creation of warehouses for holding the products, for transportation of
products acquisition of specialized vehicles, establishment of conversion industry
for further development apple production.
According to researches, in cases when there is high level of specialization in
the region, the relations between the industry realms as well as relations between
the industry and agriculture itself is conducted in efficient and appropriate way.
From this point of view formation of clusters in accordance with development
level and structure of each region is of high importance. Cluster or industrial group
is group of related entities and companies which are allocated close to each other
from geographic point of view and their operations are close complete each other.
In practice, establishment of specialized realm in the region creates specific
relations between producer and customers and increase their competitiveness.
We would like to note that establishment of free economic zones plays the
crucial role in establishment of clusters. The aim for establishment of free
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