IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/250900.html
   My bibliography  Save this paper

Textile and Chemical Subsectors in the Azerbaijani Economy: A Descriptive Glance at Possible De-Industrialization

Author

Listed:
  • Niftiyev, Ibrahim

Abstract

Azerbaijan's economy has been investigated within Dutch disease (DD) and Natural Resource Curse Theory (NRCT) several times during the last 20-22 years, but the studies relied on heavily aggregated data and speculative theoretical models. Opinions differ in academia as to how and to what extent these phenomena happened. However, we are still of the assertion that non-oil manufacturing, in general, has experienced adverse effects since the huge oil revenue found its way into the Azerbaijani economy because the cost of non-oil production rose and competitiveness declined due to the domestic inflationary pressures. Meanwhile, subsectoral and specific parts of non-oil economy have not been studied in more detail. This working paper invites to consider textile and chemical subsectors as de-industrialized economic subsectors due to the oil boom's take over since 2005 and 2006 in Azerbaijan. The descriptive analysis shows that the textile subsector is less likely to be relevant from a de-industrialization standpoint after the collapse of the Soviet Union; however, certain chemical subsectors seem to strongly react to the oil boom. Still, this does not mean that we have nothing to worry about the output of the textile industry. These results can be supported by quantitative and empirical works, but not limited to. Qualitative methods can generate new insights on microeconomic levels (i.e., factory or industrial park) about non-oil manufacturing in the Azerbaijani economy to reveal potential adverse/positive effects of oil-led economic growth and development. This working paper and upcoming works can be a useful framework for the government officials and decisionmakers to follow more thorough industrial policies to recover non-oil industrial potential of the Azerbaijani economy in a short period.

Suggested Citation

  • Niftiyev, Ibrahim, 2022. "Textile and Chemical Subsectors in the Azerbaijani Economy: A Descriptive Glance at Possible De-Industrialization," EconStor Preprints 250900, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:250900
    DOI: 10.2139/ssrn.4035938
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/250900/1/Textile-and-Chemical-Subsectors-in-the-Azerbaijani-Economy.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.2139/ssrn.4035938?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Akif Musayev & Khatai Aliyev, 2017. "Modelling Oil-Sector Dependency of Tax Revenues in a Resource Rich Country: Evidence from Azerbaijan," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(3), pages 1023-1029.
    2. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
    3. Lala Hamidova, 2018. "Diversification Of The Economy Of Azerbaijan How To Overcome Resource Dependence," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 14(1), pages 2-13.
    4. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    5. repec:zbw:bofitp:1999_005 is not listed on IDEAS
    6. Fakhri Hasanov, 2010. "The Impact of Real Oil Price on Real Effective Exchange Rate: The Case of Azerbaijan," Discussion Papers of DIW Berlin 1041, DIW Berlin, German Institute for Economic Research.
    7. Fakhri, Hasanov, 2010. "The Impact of Real Effective Exchange Rate on the Non-oil Export: The Case of Azerbaijan," MPRA Paper 29556, University Library of Munich, Germany.
    8. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    9. Bayramov, Vugar & Abbas, Gulnara, 2017. "Oil shock in the Caspian Basin: Diversification policy and subsidized economies," Resources Policy, Elsevier, vol. 54(C), pages 149-156.
    10. Shahriyar Mukhtarov & Jeyhun Mammadov & Fariz Ahmadov, 2019. "The Impact of Oil Prices on Inflation: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 97-102.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niftiyev, Ibrahim, 2022. "The Dutch Disease Syndrome Side Effects in Manufacturing Employment: A VAR Analysis of the Azerbaijan Economy," EconStor Conference Papers 266654, ZBW - Leibniz Information Centre for Economics.
    2. Hasanov, Fakhri, 2012. "The impact of the real exchange rate on non-oil exports. Is there an asymmetric adjustment towards the equilibrium?," MPRA Paper 43728, University Library of Munich, Germany.
    3. Niftiyev, Ibrahim, 2020. "The De-industrialization Process In Azerbaijan: Dutch Disease Syndrome Revisited," EconStor Conference Papers 227485, ZBW - Leibniz Information Centre for Economics.
    4. Giovanni Covi, 2014. "Dutch disease and sustainability of the Russian political economy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(2), pages 75-110.
    5. Elissaios Papyrakis & Reyer Gerlagh, 2005. "Natural Resources, Innovation, and Growth," DEGIT Conference Papers c010_054, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. Sabna Ali & Syed Mansoob Murshed & Elissaios Papyrakis, 2023. "Oil, export diversification and economic growth in Sudan: evidence from a VAR model," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 77-96, January.
    7. Elissaios Papyrakis, 2004. "Natural Resources, Innovation, and Growth," Working Papers 2004.129, Fondazione Eni Enrico Mattei.
    8. Niftiyev, Ibrahim, 2020. "Determinants of the Agricultural Exports in Azerbaijan," EconStor Preprints 226347, ZBW - Leibniz Information Centre for Economics.
    9. Niftiyev, Ibrahim, 2020. "Analysis of Inflation Trends in Urban and Rural Parts of Azerbaijan: Main Drivers and Links to Oil Revenue," EconStor Preprints 226217, ZBW - Leibniz Information Centre for Economics.
    10. Khatai Aliyev & Altay Ismayilov & Ilkin Gasimov, 2019. "Modelling Elasticity of Non-Oil Tax Revenues to Oil Price Changes: is There U-Shaped Association? Evidence from Azerbaijan," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(3), pages 799-810.
    11. Katarzyna Czech & Ibrahim Niftiyev, 2021. "The Impact of Oil Price Shocks on Oil-Dependent Countries’ Currencies: The Case of Azerbaijan and Kazakhstan," JRFM, MDPI, vol. 14(9), pages 1-14, September.
    12. Hasanov, Fakhri, 2009. "Analyzing price level in a booming economy: the case of Azerbaijan," MPRA Paper 29555, University Library of Munich, Germany.
    13. Köse, Nezir & Ünal, Emre, 2021. "The effects of the oil price and oil price volatility on inflation in Turkey," Energy, Elsevier, vol. 226(C).
    14. Davis, Graham A., 2010. "Trade in mineral resources," WTO Staff Working Papers ERSD-2010-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    15. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on internatio," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    16. Stuart John Barton, 2016. "Policy Signals and Market Responses," Palgrave Studies in the History of Finance, Palgrave Macmillan, number 978-1-137-39098-1, December.
    17. João Sousa Andrade & António Portugal Duarte, 2013. "The Dutch Disease in the Portuguese Economy," GEMF Working Papers 2013-05, GEMF, Faculty of Economics, University of Coimbra.
    18. Niftiyev, Ibrahim, 2020. "Descriptive Analysis of Employment In Azerbaijan: Possibilities of the Dutch Disease," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 77(1), pages 100-112.
    19. Alssadek, Marwan & Benhin, James, 2021. "Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries," Resources Policy, Elsevier, vol. 74(C).
    20. Ibrahim Niftiyev & Natavan Namazova, 2020. "Analysis of Cyclicality in the Azerbaijan Economy: Results of the Chi-Square Test," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 122-134, June.

    More about this item

    Keywords

    Azerbaijan economy; chemical subsectors; de-industrialization; Dutch disease; economic subsectors; industrial output; natural resource curse theory; non-oil industry; textile subsectors;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:250900. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.