Abstract

The present article “Azerbaijan’s Current and Potential Comparative Advantage”, which has been prepared as a contribution to the National Employment Strategy, provides an analysis of the sectors and industries in which Azerbaijan is either currently competitive or there is a potential to become competitive in the future. This study proves the existence of the competitive, non-oil sectors in Azerbaijan and there are justifiable reasons to suppose that new and competitive industries can develop in the future. Along with the analyses of the current competitive sectors in Azerbaijan, this report recommends to undertake detailed and comprehensive analysis of those sectors which are proved to be currently competitive and to identify the key obstacles hindering their development. These further investigations should also provide a basis for linking comparative advantage with labor markets to create the conditions for competitive industries that generate more employment in the sectors outside oil and gas.

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