The Role of Industrial Parks in Azerbaijan’s Economy

Industrial parks have become one of the most frequently used instruments of industrial policy for encouraging non-oil sector development, attracting private investment, supporting technological upgrading, and creating employment opportunities in the regions. In recent years, changes in global value chains, growing international competition, and increasing environmental requirements have further strengthened the importance of such zones. In Azerbaijan, industrial parks have been established as specially designated areas equipped with infrastructure and administered through the Economic Zones Development Agency (EZDA). At the same time, tax and customs incentives, together with the one-stop-shop mechanism, have been introduced to facilitate business activity and improve the investment climate. Official data indicate that industrial zones have attracted investments exceeding AZN 7 billion, generated more than 11 thousand permanent jobs, produced goods worth AZN 19.4 billion, and exported products valued at AZN 6.1 billion to approximately 70 countries. The purpose of this study is to examine the contribution of industrial parks to the Azerbaijani economy and to evaluate their performance through investment, production, export, and employment indicators. Particular attention is paid to differences among parks with distinct specialization profiles, including heavy industry, light manufacturing, and reconstruction-oriented industrial zones. The study also seeks to compare the Azerbaijani experience with selected international industrial park and special economic zone models in order to identify common features and distinctive characteristics. The research relies on descriptive statistical analysis of official data, comparative assessment of individual industrial parks, ratio-based evaluation of selected performance indicators, and analysis of the institutional and regulatory framework governing industrial zones. In addition, international practices are reviewed to provide a broader comparative perspective. The results suggest that the economic contribution of industrial parks extends beyond investment attraction and job creation. Their effectiveness is also influenced by factors such as governance arrangements, sectoral specialization, logistics connectivity, and the availability of qualified human resources. Based on these findings, several policy implications for improving the long-term performance of industrial parks are proposed