The role of Exchange Rates in non-oil export activity: evidence from Azerbaijan

Abstract

The dependence of the Azerbaijani economy on oil makes urgent the issue of diversifying the economy to increase its competitiveness. This, in turn, necessitates the formation of techniques to qualitatively assess the effectiveness of diversification to alternative, namely non-oil exports. This study aims to develop an econometric model to assess the impact of non-oil export diversification on Azerbaijan's economic development. Based on the literature analysis and using hierarchy analysis by T. Saaty, a list of indicators has been proposed to assess the diversification of non-oil exports. The opinions of 30 experts were used to prioritize the indicators. An integral coefficient of diversification of non-oil exports was modelled based on an additive convolution of diversification indicators, taking into account the coefficients of their significance and expert assessments. The research results can serve as a suggestion as to the formation of an effective strategy for the modernization of the country's economy.

A practical model to implementing IFRS in the national accounting system: The case of Azerbaijan

“…Many scientific studies have shown that increasing trade openness, combined with increased participation in global value chains, can improve export diversification and attract foreign investment, and can provide a 5-10% annual increase in a country's income (Ganbarov, Alieva & Babazade, 2020). However, one of the severe obstacles to achieving the set tasks by Azerbaijan is the presence of numerous differences and incompatibility in the maintenance of financial statements of companies compiled in different countries, e.g.…”