Identification Subject The Economy of Azerbaijan - 6ECTS credits

(code, title, credits)

Department International School of Economy, Azerbaijan State Economic
University
Program Undergraduate
(undergraduate,
graduate)
Term Fall, 2023
Instructors Ingilab Ahmadov
E-mail: ingilab.ahmadov@gmail.com
Phone:
Classroom/hours
Office hours
Prerequisites Principles of Microeconomics, Principle of Macroeconomics
Language English
Compulsory/Elective Compulsory
Required textbooks and
course materials Main textbook: “Economy of Azerbaijan. Baku-2016

Supplementary reading: 1. Azərbaycan Respublikasının milli iqtisadiyyat perspektivi

üzrə Strateji Yol Xəritəsi: http://static.president.az/pdf/38542.pdf

2. Low oil prices: economic and social implications for Azerbaijan. Caucasus analytical
digest. N83. 21 April 2016

All other materials will be handed out in lecture or will be available on the web.

Course objectives and The objective of the course is to give the basic knowledge to the students to analyze and
outline identify the main characteristics of the economy of Azerbaijan, the advantages, and
disadvantages of the existing economic model, sectoral and regional structure. The course
will give the students a chance to discuss interactively the dynamics of economic
development of Azerbaijan, focusing on the main barriers to the economic reforms and
ways to improve the economic performance
Learning outcomes At the end of the course, students should have clear understanding about Azerbaijan’s
economy profile, specifics, key drivers, and main barriers to the economic reforms.
Students will clearly identify the institutional framework of Azerbaijan, properly
differentiate the role of government and market drivers on the way of improvement of
economic performance. Students also will implement the gained knowledge on the various
practical cases, during the classes. They will understand also the nature of oil dependency
and the ways how to diversify the economy successfully.

Teaching methods Lecture X

Group discussion X
Experiential exercise X
Case analysis X
Evaluation Methods Date/deadlines Percentage (%)
Assignment (homework) 10
Attendance 10
Class activity (seminar) 10
Colloquiums (two 20
colloquiums of equal
weight)
Exam 50
Total 100
 Tentative Schedule
Date/Day Topics Textbook/
Week

(tentative) Assignments

1 21.09.23 “Economy of
The brief history and formation of modern economy of Azerbaijan Azerbaijan”.
Ch.1
2 28.09.23 Macroeconomic analysis of Azerbaijani economy and economic growth Handout
3 05.10.23 The labor market and social policy in Azerbaijan Ch.2, Handout
4 12.10.23 The public and private sectors of Azerbaijani economy: Antitrust policy
Handout
and competitive environment
5 19.10.23 Sectoral analysis of Azerbaijan economy (1) Handout
6 26.10.23 Sectoral analysis of Azerbaijan economy (2) Handout
7 02.11.23 Colloquium 1 Handout
8 09.11.23 Azerbaijan’s monetary policy and banking sector Ch.7, Handout
9 16.11.23 Fiscal policy of Azerbaijan Handout
10 23.11.23 Oil factor of Azerbaijani economy and economic diversification (1) Ch.6, Handout
11 30.11.23 Colloquium 2
12 07.12.23 Oil factor of Azerbaijani economy and economic diversification (2) Ch.6, Handout
13 14.12.23 Regional analysis of Azerbaijani economy Ch.4, Handout
14 21.12.23 Ch.9, 11,
Foreign economic relations of Azerbaijan
Handout
15 28.12.23 The main features of the sustainable economic development of Azerbaijan Handout
Exam

This syllabus is a guide for the course and any modifications to it will be announced in advance.

Kafedranın adı İSE

Müəllimin adı İnqilab Əhmədov
Fənnin kodu 00157
Fənnin adı Azərbaycan iqtisadiyyatı
Tədris dili İngilis dili
Sualların sayı 75

Suallar
Sualların
Sualların
№ Mövzu çətinlik Sualın mətni
çəkisi
səviyyəsi
1. 01 1 (Asan) 5 bal The main reasons for the failure of the ADR era
 Describe the main periods of the economic history of
2. 01 1 (Asan) 5 bal
Azerbaijan.
3. 01 2 (Orta) 10 bal Describe the main characteristics of Soviet Azerbaijan.

Advantages and disadvantages of the Soviet period for

4. 01 2 (Orta) 10 bal
the economic development of Azerbaijan
What is the “One Belt, One Road” project and why is it
5. 01 3 (Çətin) 20 bal important for Azerbaijan?

Highlight the key periods of GDP growth in

6. 02 1 (Asan) 5 bal Azerbaijan.

Inflation in Azerbaijan: what has happened over the

7. 02 1 (Asan) 5 bal
past 30 years?
Hyperinflation Vc Moderate inflation in Azerbaijan.
8. 02 2 (Orta) 10 bal
Provide evidence.
9. 02 2 (Orta 10 bal Why is FDI dynamics in Azerbaijan so unstable?
True or false is the assertion of the modern Azerbaijani
10. 02 3 (Çətin) 20 bal
economy based on the liberal economy model? Why?
Describe the capital-province imbalance in Azerbaijan.
11. 02 2 (Orta) 10 bal
Provide statistical evidence.
What is demand-pull inflation and for what period was
12. 02 2 (Orta) 10 bal
it typical?
Describe Azerbaijan's workforce: provide statistics on
13. 03 1 (Asan) 5 bal employed, unemployed, engagement in the public
sector, private sector, etc.
Dynamics of poverty reduction in Azerbaijan: main
14. 03 1 (Asan) 5 bal
input factors.
Strategic goals of the State Poverty Reduction Program
15. 03 2 (Orta) 10 bal (2008-2015) and its achievement.

Unemployment dynamics over 30 years: statement and

16. 03 2 (Orta) 10 bal correlation with GDP growth

17. 03 1 (Asan) 5 bal Private sector employment Vc the public sector;

indicate the key factors in changing the proportion.
 Job Creation Sectors in Azerbaijan Vc Sectors
18. 03 2 (Orta) 10 bal Determining GDP

Key characteristics of modern social policy in

19. 03 3 (Çətin) 20 bal Azerbaijan. Provide evidence.

The share of private sector in GDP of Azerbaijan

20. 04 1 (Asan) 5 bal creation: the key factors of the input changes

Government agencies of Azerbaijan: the key

21. 04 1 (Asan) 5 bal
characteristics. Provide examples
What are the main principles of privatization of the
22. 04 1(Asan) 5 bal state-owned property in Azerbaijan?

The key specifics of the 2nd stage of privatization in

23. 04 2 (Orta) 10 bal
Azerbaijan?
The public enterprises of Azerbaijan: the key
24. 04 2 (Orta) 10 bal
characteristics. Provide examples
The natural monopolies of Azerbaijan and public sector
25. 04 2 (Orta) 10 bal effectiveness.

How government capitalism model reflects on the

26. 04 3 (Çətin) 20 bal public sector profile of Azerbaijan?

Explain the relationship between the quality of

27. 05 1 (Asan) 5 bal education and reducing oil dependency.

Why is the promotion of job creation one of the

28. 05 1 (Asan) 5 bal
strategic goals of the sectoral approach in Azerbaijan?
One of the targets of the Strategic Roadmap on
29. 05 2 (Orta) 10 bal National Economy is the efficiency of the public sector.
Explain why
Explain the relationship between improvement of the
30. 05 2 (Orta) 10 bal business environment and the attractiveness of FDI.
Give an example from the Azerbaijani economy.
31. 05 3 (Çətin) 20 bal Prioritize the following targets of reforming the
 Azerbaijani economy and justify your answer: i)
attracting FDI; ii) initiate competitiveness; iii) reduce
dependence on oil.
Explain the relationship between the balance of
32. 06 1 (Asan) 5 bal
payments and the oil factor in Azerbaijan.
Explain the main reasons for the devaluation of the
33. 06 2 (Orta) 10 bal
manat in 2015.
Explain why dollarization is one of the high risks of the
34. 06 2 (Orta) 10 bal Azerbaijani economy.

Dynamics of money supply in Azerbaijan over 30 years

35. 06 3 (Çətin) 20 bal of development: main turning points

Describe the main characteristics of the fiscal policy of

36. 07 1 (Asan) 5 bal
Azerbaijan
How does the oil volatility factor affect the state
37. 07 1 (Asan) 5 bal budget? Provide evidence

38. 07 2 (Orta) 10 bal How does SOFAZ interact with the state budget?
39. 07 2 (Orta) 10 bal How can you evaluate SOFAZ asset management?
40. 07 3 (Çətin) 20 bal Azerbaijan's new fiscal rule: main futures.

Oil and gas infrastructure in Azerbaijan: describe and

41. 08 1 (Asan) 5 bal
give examples
Describe the entire oil and gas transportation
42. 08 1 (Asan) 5 bal
infrastructure and provide examples
Measuring oil dependency: How would you describe
43. 08 2 (Orta) 10 bal
the case of Azerbaijan?
What is rent seeking in the oil business and how does it
44. 08 3 (Çətin) 20 bal
reflect the prospects for sustainable development?
Evidence of Dutch disease in Azerbaijan: provide
45. 09 1 (Asan) 5 bal evidence

Why is economic diversification critical for oil

46. 09 2 (Orta) 10 bal
dependent countries?
47. 09 2 (Orta) 10 bal What are the main obstacles to the successful
 diversification of the Azerbaijani economy?

What does the Herfindahl index show in countries

48. 09 2 (Orta) 10 bal dependent on oil exports?

What are the main problems of the energy transition in

49. 09 3 (Çətin) 20 bal
Azerbaijan?
Oil factor and poverty reduction in Azerbaijan. Provide
50. 09 1 (Asan) 5 bal
a link

Explain the rational for the economic regionalisation of

51. 10 1(Asan) 5 bal
Azerbaijan

52. 10 2 (orta) 10 bal Spesifics of Ganja- Dashkesan economic region

53. 10 2 (Orta) 10 bal Spesifics of Mountaious Shirvan economic region
54. 10 2 (Orta) 10 bal Spesifics of Nakhcivan economic region
55. 10 2 (Orta) 10 bal Spesifics of Guba- Khacmaz economic region
56. 10 2 (Orta) 10 bal Spesifics of Central Aran economic region
Main goals of State Program on Socio-Economic
57. 10 3 (Çətin) 20 bal
Development of regions in 2019-2023
58. 10 3 (Çətin) 20 bal Clustering in Azerbaijan: obstacles and opportunities
59. 11 2 (orta) 10 bal Trade balance of Azerbaijan: The key spesifics
60. 11 1 (asan) 5 bal
The linkage between balance of payment and oil facor
in Azertbaijan
61. 11 2 (orta) 10 bal The specifics of the flow of remittance in Azerbaijan
62. 11 2 (orta) 10 bal
Membership of Azerbaijan in International financial
organisations
63. 11 3 (Çətin) 20 bal
The capital account of Azerbaijan; statement and
specifics
64. 11 3 (Çətin) 20 bal The CBA reserves of Azerbaijan: main futures
65. 12 1 (Asan) 5 bal
Why sustainable development is important for
Azerbaijan?
66. 12 2 (Orta) 10 bal SDG’s in Azerbaijan: strengths and weaknesses
67. 12 3 (Çətin) 20 bal
İnclusive development in Azerbaijan: explain the key
barriers
68. 12 2 (Orta) 10 bal
Explain the key components of the economic security in
Azerbaijan
69. 12 2 (Orta) 10 bal Strategic Road Map on National Economy: main targets
70. 12 1 (Asan) 5 bal
The key targets of the National Priorities for socio-
economic development - 2030
71. 08 2 (Orta) 10 bal
ACG contract and it’s role in the modern development
of Azerbaijan
72. 08 2 (Orta) 10 bal
Shah-Deniz project and it’s role in the modern
development of Azerbaijan
73. 08 2 (Orta) 10 bal
Azerbaijan’s gas supply to Europe: statement and
perspectives
74. 09 2 (Orta) 10 bal
What is the difference between export and economic
diversification in Azerbaijan?
75. 09 3 (Çətin) 20 bal
Renewable energy potential of Azerbaijan and
international requirements on pollution emissions