South Caucasus in Motion: Economic and Social Mobility in Armenia, Azerbaijan, and Georgia

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Key binding constraints, structural reform, and growth potential of Azerbaijan via economic diversification: A computable general equilibrium policy impact analysis

“…1 According to “Global Competitiveness Report” for 2018–19 (World Economic Forum), although Azerbaijan ranked 58th among 141 nations in terms of global competitiveness, it ranked low in terms of macroeconomic stability (70th), skills (70th), infrastructure (77th), financial system (55th), and business dynamism (72nd). Several important studies—such as Mukhtarov (2018), Tiwari et al (2018), World Bank (2016), Ibadoghlu (2018), and Rahmanov et al (2016), to name a few—echo same concern. Thus, for diversification into non-oil and traded sectors it is necessary to go beyond the capital accumulation-led to productive-efficiency improvement via developing quality human resources, good infrastructure, access to finance, and promoting business and institutional environment (Bayramov et al, 2014; Durlauf, 2018; Estrada et al, 2017).…”

Inequality of Opportunity in South Caucasus

“…In fact, a rise in inequality in outcomes may reflect increasing returns to assets, including human capital, indicating improvement in economic conditions and a functioning market mechanism. Nevertheless, perceptions of inequality in opportunities or outcomes may also become more salient during transition considering that populations in the South Caucasus regard their family life and the lives of their parents before the transition as the crucial benchmark in evaluating current life situations (Tiwari et al 2018).…”