Page 56 - Azerbaijan State University of Economics

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

Local investments 26.8 25.4 48.4
Chemistry industry 5.6 1.3 1,5
Foreign investments 0.3 - -
Local investments 5.3 1.3 1,5
Production of construction materials 9.5 195.2 139.7
Local investments 9.5 195.2 139.7
Production of machines and equipments 3.1 0.2 0.1
Foreign investments 2.8 - -
Local investments 0.3 0.2 0.1
Local investments - 0.5 0.6
Electricity, gas and stream production,
allocation and supply 299.8 422.6 768.9
Foreign investments 98.4 23.0 188.2
Local investments 201.4 399.6 580.7
Water supply, garbage collection and refinery 30.0 391.5 508.5
Foreign investments 5.8 10.3 42.0
Local investments 24.1 381.2 466.5
Source: State Statistical Committee of Azerbaijan Republic

Therefore the government supports the production of goods with competitive

advantages, encourages their export and applies necessary measurements for the

limitation of import of these products.

From information provided in table 4 we can see that although the invenstment

in Azerbaijani industry increased in overall, foreign investments in 2005 decreased

from 3350 mln AZN to 2125 mln AZN in 2011, while local investments during the

same period increased from 826 mln AZN to 3245 mln AZN. During the same

period investment volumes decreased by 15%, at the same time foreign investments

decreased by 1.7 times, investment into the refinery sector decreased by 7.3%, at the

same time foreign investments decreased by 180 times and local investments by 11

times. Such changes in the structure brought about the natural decrease of extractive

55