Page 50 - Azerbaijan State University of Economics

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

same time the competitiveness of non-oil sector decreased significantly. In 2010

oil and gas related products accounted for 94% of total export of Azerbaijan, while

vehicles, machines and other equipment accounted only for 0.2% of total export.

However vehicles and equipments accounted for 28% of total import during this

period. The decrease in competitiveness of non-oil products and accelerated

development of oil extraction related industries played the specific role in

expansion of extraction industry.

Industry in Azerbaijan increased annually at average by 10% from 1997 till

2010, thus the growth rates in 2005 was 33.5%, in 2006 36.6%, in 2007 24%.

However such a high growth was owing to oil and gas sector. Signature of number

of agreements with the foreign companies provided an opportunity to develop oil

and gas industry. Thus in 2009 the industrial production increased by 3.4 times,

extraction industry by 5.2% and refinery industry by 1.5 times in comparison with

1995. Due to significant impact of transition period, the initial production level of

1990-s was achieved only in 2009.

Table 1. Overall economic ratios of Azerbaijani industry

Ratio Measurement 2000 2005 2010 2012
unit
Volume of industrial product Current prices, 3639 9309 27987 33945
mln AZN
The number of operating unit 1974 2621 2650 2508
companies in the industry
Annual average number of Thousand 200 193 182 184
employees person
Average nominal monthly AZN 87 197 452 599
salary/wage

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