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

11 Pages Posted: 23 Dec 2013

See all articles by Elchin Suleymanov

Elchin Suleymanov

Baku Engineering University

Osman Nuri Aras

Tishk International University

Ruslan Huseynov

Universite du Luxembourg

Multiple version iconThere are 3 versions of this paper

Date Written: June 19, 2013

Abstract

Large energy reserves have been a major contributor to the Azerbaijan economy, and affected 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.

Keywords: Oil, Azerbaijan Economy, National Budget, Inflation

JEL Classification: Q40, Q43, Q49

Suggested Citation

Suleymanov, Elchin and Aras, Osman Nuri and Huseynov, Ruslan, The Importance of Azerbaijan's Energy Revenues in Its Exports Volume and the Effects on the National Economy (June 19, 2013). Available at SSRN: https://ssrn.com/abstract=2370896 or http://dx.doi.org/10.2139/ssrn.2370896

Elchin Suleymanov (Contact Author)

Baku Engineering University ( email )

Hasan Aliyev str. 120
Khirdalan, Baku AZ 0101
Azerbaijan

Osman Nuri Aras

Tishk International University ( email )

100 Mt. st, Near Intersection,
Erbil, 44001
Iraq

Ruslan Huseynov

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

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