The Investment Opportunities in Non-Oil Sector of Azerbaijan Republic in Modern World
Mevlana (Rumi) University International Economics and Law Symposium, June 2013
4 Pages Posted: 28 Jun 2013
Date Written: June 13, 2013
After collapsing of Soviet Union in 1990 Azerbaijan Republic passed into the new period of development like any other post-Soviet countries. Thus Azerbaijan made the transition into market economic system from planned economy. The first years of transition into the market economy Azerbaijan Republic experienced instability in the economic system. During this period the social and market infrastructures were destroyed thus leading to the destruction of the economy. Foreign investors avoided Azerbaijan and they were not interested in opening new businesses in the regions. But the economic and social reforms that were carried on in the country solved this problem in a very short time. The volume of the investments in the economy of Azerbaijan increased very rapidly after the signature of the Contract of the Century. According to the official information the volume of the investment to the economy of Azerbaijan from 1994 exceeded $100 billion dollars. Thus, the invested capital in the first periods was mainly accumulated in the oil and gas sector, i .e. in energy sector. Azerbaijan Republic has already moved into a new stage of development. If the investments in non-oil sectors in the first periods were directed to the establishment of social infrastructure nowadays they are directed to the establishment of new enterprises. Until 2005 foreign investments over-passed the local investments but recently the local investment volume over-passes the foreign investments. There are nutritious conditions for the development of non-oil sector in Azerbaijan Republic.
Keywords: Azerbaijan, investment, non-oil sector, foreign investment, development
JEL Classification: H54
Suggested Citation: Suggested Citation