Page 66 - Azerbaijan State University of Economics

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

Production of machine and 5,1 84,5 22,0 21,7
equipment
Optic and electric equipment 8,9 9,2 10,2 10,3
Electricity, production and 3,6 4,4 5,9 3,7
distribution of gas and water
Source: Ministry of economic development of Azerbaijan Republic. Mid-term
(2013-2016) priorities of social-economic development

As we can see from the information provided in the table 8, according to the

prognosis of Azerbaijani government the growth of extraction industry will be

annual 2.6% during the period 2013-2016. In the mining sector increase will be

only in 2014 and will be decrease till 2016. Considering that this sector accounts

for the large part of national GDP its decrease has significant impact on GDP.

However establishment appropriate environment for investment during 2013-2016

will provide the ground or intensive development of non-oil industry. Weaving,

chemistry, metallurgy, production of machines and equipment expected to increase

by 3-8 times. For example, during 2013-2016 increase in machine production is

expected to be 34.9%, particularly in 2013 5.1%, in 2014 84%, in 2015 22% and in

2016 21.7%. this will affect the increase the portion of non-oil industry. We

believe that it will bring about increase in growth rates, quality, and decrease in

cost of production and improvement in competitiveness of the industry.

The directions of improvement of industrial policy on Azerbaijan

In order to accelerate the structural changes in Azerbaijani industry and

resolve the problem of its competitiveness both on local and foreign markets we

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