The Importance of Azerbaijan's Energy Revenues in Its Exports Volume and the Effects on the National Economy

International Conference on Eurasian Economies 11-13 October 2012 – Almaty, KAZAKHSTAN , səhifə/səhifə aralığı: 225-232, Okt 2012

8 Pages Posted: 29 Oct 2012 Last revised: 4 Dec 2013

See all articles by Elchin Suleymanov

Elchin Suleymanov

Baku Engineering University - Department of Finance

Osman Nuri Aras

Nile University of Nigeria

Multiple version iconThere are 3 versions of this paper

Date Written: October 12, 2012

Abstract

Large energy reserves have been a major contributor to the Azerbaijan economy, and effected the country's exports volume, and have become a main determinant of the country's economic structure. Azerbaijan is a country that has major oil and gas based economy with the completion of the Baku-Tbilisi-Ceyhan Oil Pipeline in 2005 and Baku-Tbilisi-Erzurum Gas Pipeline in 2007. First export oil was pumped into Baku-Tbilisi-Ceyhan in May 2005, and the oil reached Ceyhan in May 2006. On the other hand, first export gas was pumped into Baku-Tbilisi-Erzurum in March 2007. The importance of country energy source revenues on Azerbaijan's export volume and the effects on national economy has increased with the completion of these pipelines year after year. Azeri export’s reliance on energy source revenues keeps dominant position in Azerbaijan’s exports despite efforts to diversify Azerbaijan’s economy away from oil. Finally, crude oil made 86 percent and oil products made 6 percent, so oil and oil products made 92 percent of Azerbaijan’s export in 2011. Non oil products made up only 8 percent of the country’s export last year. Thus, non-oil sector contribution to Azerbaijani export was lower than Georgian export in 2011. This means that increasing of total export volume of Azerbaijan is not sustainable.

Note: Downloadable document is in Azerbaijani.

Keywords: Azerbaijan Economy, Export, Oil Export

JEL Classification: Q40, Q43, Q49

Suggested Citation

Suleymanov, Elchin and Aras, Osman Nuri, The Importance of Azerbaijan's Energy Revenues in Its Exports Volume and the Effects on the National Economy (October 12, 2012). International Conference on Eurasian Economies 11-13 October 2012 – Almaty, KAZAKHSTAN , səhifə/səhifə aralığı: 225-232, Okt 2012. Available at SSRN: https://ssrn.com/abstract=2167935 or http://dx.doi.org/10.2139/ssrn.2167935

Elchin Suleymanov (Contact Author)

Baku Engineering University - Department of Finance ( email )

Baku Sumgait Road 16th km. Hasan Aliyev Str. 120
Baku, AZ0101
Azerbaijan

HOME PAGE: http://beu.edu.az/en/staff_directory/staff/elsuleymanov

Osman Nuri Aras

Nile University of Nigeria ( email )

Abuja
Nigeria

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