CESD Research Paper: Evaluation and Modeling of Comparative Advantages in Agriculture in Azerbaijan

CESD Research Paper: Evaluation and Modeling of Comparative Advantages in Agriculture in Azerbaijan

The short history of transition to the economic model is based on the modern principles of the market and assurance to the trade surplus that was formed by natural resources within external trade. During previous periods in Azerbaijan these ones were considered the main causes for the shape of production and export opportunities according to the principles of comparative advantage. It is not a coincidence that the size of the non-oil sector does not even reach the 10% (7.4% in 2013) of the export. In addition, exports are approximately six times less than imports. Other important issues are the increase of citizen’s welfare, the creation of a strong supply of food for the country, and the support of an effective use of a potential export through the use of agriculture, which is an essential part of Azeri employment (37.1% in 2013). Additionally, the agricultural sector needs to be more profitable in Azerbaijan. For the reasons mentioned above, the main aims of this research are to analyze the local characteristics of agriculture, to define the export possibilities and products that have comparative advantages in agriculture, and to research about countries in which there are more suitable market conditions and export opportunities.

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