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AZERBAIJAN REPUBLIC MINISTRY OF ECONOMIC DEVELOPMENT CENTER OF ECONOMIC REFORMS. USE OF INFORMATION TECHNOLOGIES IN THE DETERMINATION OF COMPARATIVE ADVANTAGES OF THE COUNTRY IN WORLD LABOUR DIVISION. Dr. Vagif Rustamov Baku, Azerbaijan

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Dr. Vagif Rustamov Baku, Azerbaijan

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Dr vagif rustamov baku azerbaijan

AZERBAIJAN REPUBLIC

MINISTRY OF ECONOMIC DEVELOPMENT

CENTER OF ECONOMIC REFORMS

USE OF INFORMATION TECHNOLOGIES IN THE DETERMINATION OF COMPARATIVE ADVANTAGES OF THE COUNTRY IN WORLD LABOUR DIVISION

Dr. Vagif Rustamov

Baku, Azerbaijan

Center of Economic Reforms


Background

BACKGROUND

Main Problems of Azerbaijan economy after the independence:

  • Considerable problems in making the transition from a command to a market economy;

  • Loss of traditional markets;

  • Needs diversify of economy and structural reforms;

  • Social-economic problems of Refugees and IDPs

    For this purpose, it is of great importance to define the sectors (products) and sub-sectors of economy which have comparative advantage in world labour division


Methodology

Methodology

1. The Balassa index (Bij):

Bij = Xij/Xiw

Xij - share of service (or good) i in country j’s

total exports

Xiw - share of good i in total world exports


Methodology1

Methodology

2.The next export ratio (NERij):

NER ij= (Xij – Mij) / (Xij + Mij)

Xij - the exports of good (or service) i by

country j

Mij - the imports of good i into country j


Methodology2

Methodology

3. Finger and Krein index (Export

similarity):

n

XS = Σ min (Xia, Xib)

i=1

Xia – share of good i in the export of country A

Xib - share of good i in the export of country B


Dr vagif rustamov baku azerbaijan

Data

  • World integrated Trade Solution (the World Bank) database

  • PC–TAC trade statistics (World Trade Organization) database.

    This database provides information on the exports and imports of different categories of goods for a sample of 183 countries. Data base of last 3 years (2000-2002) were used for the calculations.


Dr vagif rustamov baku azerbaijan

Conclusions

  • Comparative advantage of Azerbaijan:

  • Agriculture - tobacco, apple, nuts, tea, vegetables, oilseeds, raw cotton, and pharmaceutical plants growing

  • Processing - fruit juices, cigarettes, manufactured tobacco, animal skins, cotton linters, carded and combed cotton, cotton seed oil, safflower oil


Dr vagif rustamov baku azerbaijan

Conclusions

Oil industry - kerosene and medium oils, motor spirit and light oils, gas oils, fuel oils

Chemical and petrochemical industry - ethylene, polyacetals and polyethers, polyethylene and plastics


Dr vagif rustamov baku azerbaijan

Conclusions

  • 2. Potentially advantage of Azerbaijan:

  • Products of petrochemical and chemical sector

  • (lactams and lactones, tyres for bus or lorry, polyvinyl chloride, sulphur (excluding, purified), nitrogenous fertilizers photo film)

  • textile industryWoven jackets, blazers, swimwear, hat shapes and other products of might be developed in near future, too.


Dr vagif rustamov baku azerbaijan

Conclusions

  • Oil seeds flour and meal, barley grain, fine animal hair, salted, frozen, preserved and dried fish liver, not frozen crustaceans, cereal (non-wheat) flour, cereal meal, cereals breakfast foods, sugars, syrups, malt, malt flour, natural honey, combed and carded wool


Dr vagif rustamov baku azerbaijan

The study shows that, it is possible to get valuable strategic results by using information technologies in research works

We would further recommend that, information technologies in research works must be used widely and more frequently


Dr vagif rustamov baku azerbaijan

THANK YOU

FOR YOUR ATTENTION!


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