Page 31 - Azerbaijan State University of Economics
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THE                      JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 28-46

                    And this is one of the main reasons for the instability in the industry's share because
                    of its dependence on oil price fluctuations. In the database of the State Statictical
                    Committee of the Republic of Azerbaijan, the country's industry is divided into four
                    sectors:
                    1) Mining industry (crude oil, natural gas, mineral ores and other mining products);
                    2) Manufacturing industry (consists of a large number of production areas by types of

                    economic activities;

                    3) Electricity, gas and steam production, distribution and supply;
                    4) Water supply, waste treatment and processing


                    Figure 2 shows the share of these sectors in the country’s industry for the year of
                           2022:

                              Area structure of industrial production, based on the actual prices
                                       of the respective years relative to the total, %

                                               1%
                                             3%
                                                                               Mədənçıxarma sənayesi
                                   21%
                                                                               Emal sənayesi


                                                                               Elektrik enerjisi, qaz və buxar
                                                                               istehsalı, bölüşdürülməsi və
                                                                               təchizatı
                                                                               Su təchizatı, tullantıların
                                                         75%
                                                                               təmizlənməsi və emalı




                              Fig.2. Area structure of industrial production in Azerbaijan
                                                Source: www.stat.gov.az

                    As can be seen from Figure 2, in 2022, the mining industry accounted for an absolute
                    majority of 75% of the total industrial output. The reason for this is that the country
                    is  rich  in  oil  and  gas  resources.  However,  the  development  of  the  non-oil  sector,
                    including the non-oil industry, is in the center of attention in the country, and measures
                    are being taken in this direction. As an example, we can show that the Oil Fund (OF)
                    was created and every year money is transferred from the OF to the state budget and
                    directed to the development of the non-oil sector.


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