DIVERSIFICATION OF THE ECONOMY OF AZERBAIJAN: HOW TO OVERCOME RESOURCE DEPENDENCE?
LALA HAMIDOVA
Abstract
The diversification of the economy at resource-dependent countries is an important measure to reduce dependence on these resources. To this end, the state needs to implement policies to improve the business environment, determine the priority of industries, support and develop socially important industries and infrastructure. The purpose of the study is to justify the need to diversify the economy of Azerbaijan and determine its ways in order to reduce the dependence of the economy on oil and gas resources.
The results of the research show that in order to avoid resource dependence, it is necessary to determine the non-oil export potential and priority industries. In the condition of a low exchange rate of the national currency, it is necessary to create a favorable business environment for the production of import-substituting products. An important role is assigned to institutions in the successful implementation of the diversification of the economy.
Key words
resource dependence, economic diversification, oil and gas resources, the economy of Azerbaijan
JEL Codes: Q32, Q38, P28
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