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Azerbaijan’s Economic Structure and Its Role in Global Value Chains

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The economy's heavy reliance on the oil and gas sector fosters vulnerability to price fluctuations, necessitating diversification efforts.
Infrastructure projects like the Baku Tbilisi Kars railway aim to enhance Azerbaijan's role as a logistics hub, improving trade accessibility.
Azerbaijan's integration into global value chains is limited but gradually improving, bolstered by strategic investments in various sectors.
Governance challenges and the need for institutional reforms remain obstacles, yet opportunities exist for deeper integration into global markets.

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Observational analysis reveals Azerbaijan's economic structure relies heavily on oil, indicating a need for diversification into non-oil sectors.

N.N. Ismayilova (2025) studied this question.

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Observational analysis reveals Azerbaijan's economic structure relies heavily on oil, indicating a need for diversification into non-oil sectors.