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THE                      JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 28-46

                    It is well known that Azerbaijan's economy, particularly its industrial sector, is heavily
                    influenced by the oil factor. But in the present day, on the edge of a new industrial
                    revolution characterized by the widespread application of advanced technology, the
                    issues of ending reliance on oil and modernizing the Azerbaijani economy have taken
                    on much greater significance.

                    In various studies, issues such as analysis of the results of measures implemented for
                    the  development  of  non-oil  industry  (Amin,  2022),  directions  for  achieving  the
                    development  of  the  industrial  regions  (Yahyayeva,  2018),  modern  situation  of
                    industrial parks, industrial districts of technoparkaks ((Arif, 2016), directions for the
                    improvement of the food industry (Guliyev and Abutalibov, 2016) in Azerbaijan were
                    analysed.  In  the  research  by  Jahangirov  (2022),  on  the  eve  of  the  new  industrial
                    revoultion  the  problems  of  the  modernization  of  the  Azerbaijan  industry  were
                    examined, and it is emphasized that to ensure flexible transformation of Azerbaijani
                    industry,  special attention should be paid issues like implementing major economic
                    projects  to  ensure  the  flexible  transformation  of  the  Azerbaijan  industry,  urgent
                    measures should be implemented, the structure of the industry should be analyzed,
                    problem areas should be revealed in time and more effective tools should be used. In
                    this  regard,  in  our  study,  the  effects  of  investments  in  this  sector  and  its  mutual
                    relations with the rest of the economy were evaluated in order to determine problems
                    in the industry and create development prospects.

                    It is better to use economy-wide modeling rather than partial-equilibrium analysis to
                    examine the growth and distributional implications of different development routes.
                    The latter leaves out a great deal of significant elements, many of which are hard to
                    predict and that work simultaneously and interactively. Numerous economic sectors
                    have significant interactions that affect the direction and strength of policy effects,
                    according  to  quantitative  studies  on  the  macro  and  distributional  effects  of
                    development programs (Bautista et al., 1999). To estimate economy-wide effect of a
                    sector, multiplier models and CGE models are widely used in the literature (Mustafaev
                    and Naydenov, 2021; Zhang et al., 2020; Garza-Gil et al., 2017; Nejati and Bahmani,
                    2020; Kat et al., 2018). (Kyophilavong, 2016) investigates the impact of the mining
                    sector on the Laos’ economy using CGE model and it finds that higher capital stock
                    and productivity lead to increased value added, production, exports and investment in
                    the mining sector and these increases result in higher real gross domestic product,
                    exports and investment.







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