The Role of Savings in the Economic Development of the Republic of Azerbaijan

International Journal of Economic Sciences and Applied Research, Vol. 3, No. 2, pp. 99-110, 2010

12 Pages Posted: 25 Jan 2011  

Nagi Bairamli

affiliation not provided to SSRN

Vassilis Kostoglou

affiliation not provided to SSRN

Date Written: September 12, 2010

Abstract

This article aims to analyze the possibilities of the accumulation and mobilization of savings and their role in the economic development of the Republic of Azerbaijan. Currently, the national economic growth is mostly based on the resource components; crude oil, natural gas and oil products. For the development of the non-oil sector the mobilization of domestic savings into investments would prove very useful. Savings of people should be the most important investment resource for the development of the non-oil sector, as the foreign capital is mostly involved in production of natural resources like oil and gas. The mobilization of domestic savings is crucial for raising the economic growth and promoting development, as it is the private savings that affect the domestic investments significantly. The most of the savings are made when they are fully channeled into the productive investments. As a result, this will lead to the solution of problems of employment and economic growth.

Keywords: Economic Growth and Development, Savings, Investments, Financial Institutions

JEL Classification: O16, O11, E44

Suggested Citation

Bairamli, Nagi and Kostoglou, Vassilis, The Role of Savings in the Economic Development of the Republic of Azerbaijan (September 12, 2010). International Journal of Economic Sciences and Applied Research, Vol. 3, No. 2, pp. 99-110, 2010. Available at SSRN: https://ssrn.com/abstract=1746958

Nagi Bairamli (Contact Author)

affiliation not provided to SSRN ( email )

Vassilis Kostoglou

affiliation not provided to SSRN ( email )

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