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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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