Acceso usuarios
Azerbaijan’s exports consist primarily of oil and oil products, with non-oil exports accounting for an average of only 11.5 percent of total exports over the last five years (2016-2020). This paper aims to examine the impact of export subsidies on export growth in the non-oil sector, as well as revenues of exporters in the case of Azerbaijan. In particular, two evaluation approaches are combined for the purposes of this study, which makes it unique application among the economic literature. The six criteria of Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD/DAC) have been used for evaluation. A linear regression model was built to assess the impact of subsidies on non-oil export growth and variance analysis was performed to obtain a complete result. The findings of the analysis revealed that: (1) subsidies did not play a significant role in export growth and revenues of exporters; (2) subsidies did not contribute to the diversification of non-oil export and the development of distribution channels in Azerbaijan; (3) stopping the subsidy after 2020 was the right decision; (4) production support measures instead of export subsidies were more effective. The combination of two different approaches showed that increasing competitiveness, rather than subsidies, has contributed significantly to raise the level of export income.
