Page 30 - Azerbaijan State University of Economics
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Yadulla Hasanli, Gunay Rahimli: Assessment of The Multiplicative Effects of The Mining and
Manufacturing Sectors nn Azerbaijan
INTRODUCTION
Industry is one of the leading sectors of the economy and is considered one of the
main driving forces of the country's economic development. Because the
diversification of the country's economy and continuous improvement of the standard
of living of the population depends on the competitiveness of the industrial complex.
The development of the industry in a country causes in an increase in employment
and as a result an increase in standard of living of population. The production of the
country also increases by creating conditions for the efficient use of resources. From
this point of view, as in all countries, the development of industry is one of the
important issues in Azerbaijan. In Azerbaijan, the industrial sector has a large share
in the economy. The figure 1 shows the share of added value of industry in the
country's economy for 2005-2022.
The share of added value of industry in the economy of
Azerbaijan, %
60
50
40
30
20
10
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fig. 1. The share of added value of industry in the economy of Azerbaijan
Source: www.stat.gov.az
It can be seen from the figure that, although the share of the industry was high during
the considered period, it did not have a stable trend. In 2007, the industry's share was
the highest at 59.5%, and in 2020 it was the lowest at 34.1%. In 2022, the share of
added value of the industry in the country's economy was 51.1%, which means that a
little more than half of the added value created in the country belongs to the industry.
But one of the main problems here is that the majority of the industrial output is in the
mining industry.
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