Page 92 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 1, 2020, pp. 92-99

MAIN DIRECTIONS OF THE NON-OIL EXPORT SECTOR IN
AZERBAIJAN

Bahruz Babayev

Azerbaijan State University of Economics (UNEC)
Email: bahruz.babayev@unec.edu.az; Tel: (+994 55) 981 06 15

Received 17 January 2019; accepted 20 May 2020; published online 10 July 2020

ABSTRACT
Development of the non-oil export sector and economic diversification has become a
critical issue for the government of Azerbaijan. This necessity is connected with
fluctuating oil prices in the world energ markets and precipitous changes in
international economics. President Mr Ilham Aliyev attended an interactive session
on Strategic Outlook: Eurasia held as part of the Davos World Economic Forum in
2018 and stressed that “as a source of major income we should look at technology,
innovation, industry, entrepreneurship, and agriculture”. Although these sectors have
been prioritized and large-scale reforms are conducted in Azerbaijan, this paper
detects that Azerbaijan is at the onset of economic diversification and its economy is
still fueled by oil and gas revenues. The future progress will depend on how deeply
and holistically the reforms will be realized.

Keywords: Economic diversification, non-oil sector, Azerbaijan, policies, growth.

JEL classification: F00, F01, F55, 038.

INTRODUCTION
Before started to discuss the development of Azerbaijan’s non-oil export sector, we
will have to determine the main directions of non-oil export sector. Azerbaijan has
identified several key areas. President Ilham Aliyev participated at the interactive
session on “Strategic Outlook: Eurasia” held as a part of the Davos World Economic
Forum in 2018 and mentioned that “diversification of the economy is our main
objective, and I think that we achieved success in that direction. When we
experienced a dramatic drop in oil prices I said in Azerbaijan that for us a post-oil
period has already started, and we should forget about oil, forget about gas. Of
course, we must implement completely the projects, which we are now
implementing. But as a source of major income we should look at technology,
innovation, industry, entrepreneurship, and agriculture” (President.az, 2018). It
shows that Azerbaijan is committed to develop the mentioned sectors.

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