Oil dependecy of economy in case of Republic of Azerbaijan Economy and Dutch Disase Syndrome symptoms

Abdullayev Humbat (2021) Oil dependecy of economy in case of Republic of Azerbaijan Economy and Dutch Disase Syndrome symptoms. Faculty of International Management and Business.

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The thesis study includes the problems faced in today's oil-rich countries and possible solutions to these problems. As of today’s era, oil and oil products maintains its importance as the one of most demanded energy product used in industry. While many countries import oil on the other hand a certain group of countries are the main exporters of this product in the world. There are advantages and benefits of having oil and gas reserves, as well as serious economic disadvantages if they are not managed properly. In this respect, Azerbaijan stands out as an obvious example. That is to say, after first Karabakh war, when the country became more stable, main revenue canal of economy has formed by oil export, and by that way dependency on this sector has increased over time and has become vulnerable to external shocks in the named sector. The export item, which is one of the most important macroeconomic indicators in the country's economy, remained dependent on oil and oil products. As a logical result of this, other sectors are underdeveloped, the local currency of the country has appreciated, the state budget has been formed mainly on the account of oil revenues and dependence on a single sector has increased. In the economic literature, this situation also appears as the Dutch syndrome. Beside the symptoms of this syndrome are observed in the Azerbaijani economy, as of 2015, after the sharp declines in world oil prices, the painful picture surfaced. Because, following the drop in oil prices, the Azerbaijani economy has entered a turbu-lent period, economic growth has turned negative, inflation has reached double digits, and a de-crease has been observed in the country's exports. The vulnerability of the Azerbaijani economy against the price fallings in oil prices is one of the important indicators that shows country's eco-nomic dependence to this sector. For this reason, it has become necessary to take urgent and una-voidable measures from policy makers. As a matter of fact, after the negative shock experienced in the economy, the Azerbaijani government published a comprehensive report called "strategic road map" and announced a definitive notification plan for the correction of this situation. Along the strategic road map of Azerbaijan, recommendations and policies for the elimination of Dutch syndrome symptoms and reduction of dependence on oil are presented in the thesis study.


Budapest Business University


Faculty of International Management and Business


Nemzetközi Kapcsolatok Tanszék




Nemzetközi Gazdaság és Gazdálkodás


Konzulens neve
Konzulens típusa
Assignment, Scientific qualification, Institution
Dr. Gyene Pál István
főiskolai docens; Nemzetközi Kapcsolatok Tanszék; KKK

Item Type: Thesis (UNSPECIFIED)
Uncontrolled Keywords: Azerbaijan, Dutch disase, economy, oil exporting, Oil producing
SWORD Depositor: Archive User
Depositing User: Archive User
Date Deposited: 2021. Sep. 22. 08:30
Last Modified: 2022. Oct. 14. 12:29

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