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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 21-30

regional connectivity, 2014; page: 27], recent projects such as the Europe Persia Express

Gateway (EPEG) and planned projects such as Trans-Eurasian Information Super Highway

(TASIM) and the Trans-Caspian Links could position the country as a transit hub for the region.

Among the landlocked developing countries (LLDCs), Azerbaijan has the most robust cross-

border connectivity.

Azerbaijan is committed to a trading system promoting development which is based on

fair and equitable rules. Azerbaijanis keen to establish a diversified free-market economy that

will increase Azerbaijan's competitiveness in all economic sectors, reduce its vulnerability that is

due to the dependence on the oil and gas sector, and attract more foreign direct investment.

According to the UNESCAP report [The development economics of landlockedness:

understanding the development costs of being landlocked, 2013; page: 65], Azerbaijan’s

development cost of being landlocked equals to 11.24%. As a landlocked developing country,

Azerbaijan considers its integration towards multilateral trading system as a favorable

opportunity for realization of its economic policy objectives. In order to diversify the economy

and primarily to develop non-oil sector, Azerbaijan is committed to the integration into the

multilateral trading system under the favorable terms aimed at supporting country’s economic

policy objectives and ensuring further sustainable socio-economic development of the country.

In fact, a number of important measures have been taken in Azerbaijan in order to boost

economic development in the country and harmonize the national legislation with the

international requirements.

In order to reduce dependence from oil and gas sector, Azerbaijan has set as a priority to

diversify the economy, enhance socio-economic development of the regions of Azerbaijan and

create comparative advantages in agricultural products. In this regard, the terms and conditions

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