Page 48 - Azerbaijan State University of Economics

Gulbaniz T. Aliyeva: The issues related to formation of competitive structure of industry in Azerbaijan

Introduction

Industry plays important role in the economy of Azerbaijan Republic. The

potential and financial opportunities of industry in comparison with other sector of

the economy are much higher. During long-lasting years the industry constituted

the basis of national economy. The industry in Azerbaijan has not only high

potential, but also large perspectives. During transition from planned to market

economy the industry was a sector of the economy, which incurred the largest

losses. Thus during the transformation process lasting till 1996 the production

volume decreased by 3.5 times and accounted for only 28% of level achieved in

1990. Further till 2010 the economic and industrial development in the country was

achieved basically by the means of fuel-energy complex. Development of this

sector brought about significant changes in industrial structure of the Azerbaijani

industry. Although the production volumes during this period were 2.5 times

higher than these in 1990, the refinery related volumes achieved only 45% of level

indicated in 1990. Due to the fact that the industry developed in this pattern during

the post-crisis period, the portion of oils sector in industry increased, while the

production in non-oil sector decreased significantly.

Al these factors required the significant structural changes in Azerbaijani

industry and brought to agenda the formation of its competitive structure. As a

result we analyzed the structural changes which took place during the period 1990-

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