Page 68 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 1, 2016, pp. 64-77

Figure 2. GDP per unit of energy use (PPP $ per kg of oil equivalent) in Azerbaijan

20

16 12.21
11.17 11.5 10.98 11.63
12 8.84 9.08
6.3
8
2.1 2.3 2.7
4

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Own construction according to the World Development Indicators & Global
Development Finance

As an indicator of this trend we can show more than 700 thousand new jobs
from 2005 to 2015 most of which falls on the share of non-oil sector. Also an
alternative energy use in Azerbaijan including sun, wind and electric power was in
the focus of sustainable development trends. Nevertheless, economic and political
crises taking place in the world has not passed Azerbaijan economy. During the
economic crises of 2008 and 2014 non-oil sector growth rate increased at first, and
then slowed down. See the Figure 2. The process of slowing down is due primarily
to the decline in oil prices on world markets and the reduction of the State budget. In
this regard, the government is taking steps to reduce some public investment
programs that have been planned in advance for the development of the productive
sectors of non-oil sector, while the budget allocated more funds to the social and
economic programs. Despite the efforts of the Government of Azerbaijan to realize
the diversification of industries and stimulating the development of non-oil sector,
Azerbaijan today has a competitive advantage in the main oil refining and chemical
industries. The main priority sectors in the development of non-oil sector in
Azerbaijan are considered to be agriculture, tourism, technology of information and
communication, processing industry. International financial institutions emphasize
the importance of the agricultural and tourism sectors. Thus, 44 % of the employed
population is working in this particular field. For this reason, the development of
agriculture is carried out successive government programs and reforms involved the
latest technology.

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