Retrospective of Economic and Trade Policies Focused on Agricultural Development

Abstract

The importance of the agricultural sector in the economy of Azerbaijan is high. This sector has always been at the center of economic reforms by the government. This chapter overviews economic and trade policies of the government focused on the development of agricultural production since 1991. Authors carry out analysis of policy changes during separate development stages. The research output presents agricultural policy before the oil boom as mainly devoted to achieving structural transformation from centrally planned economy to the market environment. Within the oil boom period, the government provided substantial fiscal and technical support to the agricultural sector as well as applied tax incentives to farmers but did not pay attention to the transformation from family farming to medium and large-scale production. However, fiscal and macroeconomic challenges of post-oil boom period forced the government to focus on increasing efficiency of the subsidies and incentives and implementation of further agricultural reforms.

The Curse of Transfers? Modelling Fiscal Policy Effectiveness in Azerbaijan

“…Clearly, this outcome is due to large share of oil sector in generation of non-transfer budget revenues (see Musayev and Aliyev, 2017). Meanwhile, large tax concessions are applied to specific sector of the non-oil sector, for example, agriculture (see Aliyev and Gasimov, 2017) In other words, tax channel has not played a substantial discouraging role in the second period.…”

How Oil Price Changes Affect Inflation in an Oil-Exporting Country: Evidence from Azerbaijan

“…Regarding the case discussed here, namely Azerbaijan, the country enjoyed an oil boom after 2005 [5] and injected resource revenues into non-oil sectors to foster economic growth [6]. However, natural resources still maintain their dominant influence in the economy, generating nearly half of the national output and around 90% of total exports, leading to debates on resource curse symptoms in Azerbaijan (see [7][8][9][10]).…”

Swot Analysis of Karabakh's Agriculture: Opportunities for Application of Agricultural Innovation Systems

“…Agriculture sector has always been at the center of state policy (Aliyev and Gasimov, 2018) accompanied by large subsidization (Danilowska et al, 2015;Humbatova and Hajiyev, 2020). However, modernization of agriculture requires adopting the best practices in the sector (Sadigov, 2018).…”