International Conference on Eurasian Economies

11-13 October 2012 – Almaty, KAZAKHSTAN

Paper detail

Paper ID : 464
Status : Paper published
Language : Turkish
Topic : Natural Resources and Environment
Presenter: Prof. Dr. Osman Nuri Aras
Session : 4B Enerji ve Tabii Kaynaklar

The Importance of Azerbaijan's Energy Revenues in its Exports Volume and the Effects on the National Economy
Azerbaycan’ın Enerji Kaynakları Gelirlerinin İhraç Hacmindeki Yeri ve Ülke Ekonomisine Etkisi

• Prof. Dr. Osman Nuri Aras (Fatih University, Türkiye)
• Assoc. Prof. Dr. Elchin Suleymanov (Baku Engineering University, Azerbaijan)

Abstract

Large energy reserves have been a major contributor to the Azerbaijan economy, and effected the country's exports volume, and have become a main determinant of the country's economic structure. Azerbaijan is a country that has major oil and gas based economy with the completion of the Baku-Tbilisi-Ceyhan Oil Pipeline in 2005 and Baku-Tbilisi-Erzurum Gas Pipeline in 2007. First export oil was pumped into Baku-Tbilisi-Ceyhan in May 2005, and the oil reached Ceyhan in May 2006. On the other hand, first export gas was pumped into Baku-Tbilisi-Erzurum in March 2007. The importance of country energy source revenues on Azerbaijan's export volume and the effects on national economy has increased with the completion of these pipelines year after year. Azeri export’s reliance on energy source revenues keeps dominant position in Azerbaijan’s exports despite efforts to diversify Azerbaijan’s economy away from oil. Finally, crude oil made 86 percent and oil products made 6 percent, so oil and oil products made 92 percent of Azerbaijan’s export in 2011. Non-oil products made up only 8 percent of the country’s export last year. Thus, non-oil sector contribution to Azerbaijani export was lower than Georgian export in 2011. This means that increasing of total export volume of Azerbaijan is not sustainable.

JEL codes: Q40, Q43, Q49

Aras, Osman Nuri, Suleymanov, Elchin (2012). "The Importance of Azerbaijan's Energy Revenues in its Exports Volume and the Effects on the National Economy" in Proceedings of International Conference of Eurasian Economies 2012, pp.225-232, Almaty, KAZAKHSTAN.

DOI: https://doi.org/10.36880/C03.00464

Full paper in PDF format.

Session 4B: Enerji ve Tabii Kaynaklar