The current state and dynamics of development of Azerbaijan-Germany trade relations

Aliyeva Gunay Tanriverdi gyzy
Doctoral Institute of Economics National Academy of Sciences of Azerbaijan, E-mail:matlabm@yandex.ru

Cite this article:

Aliyeva Gunay Tanriverdi gyzy, (2019) The current state and dynamics of development of Azerbaijan-Germany trade relations. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 3(266), pp. 13–36.

Abstract

The article is devoted to some issues of the dynamics of development of Azerbaijani-German trade and economic relations, the analysis of its current state. In the introduction, author notes that in recent years in the emerging markets of the European Union, the possibility of increasing mutual trade and investment between Azerbaijan and Germany has become increasingly important. The author during his research widely used the method of analyzing article statistical data, the method of comparative analysis of article statistical indicators of Azerbaijan, Germany and the European Union. It is emphasized that the foreign trade turnover of Azerbaijan with Germany has a tendency of stable growth, and the foreign trade turnover of Germany with Azerbaijan is characterized by instability. This is due to the fact that the economy of Azerbaijan is very vulnerable to external shocks. Thus, the share of oil, which is the main source of income for the country, is high in exports, and in the formation of aggregate demand, government demand prevails, and oil revenues are the source of its main financing. Thus, the change in the price of oil in the world market through the budget affects imports, and through the price of oil for export. It is also noted that the development of foreign economic and trade relations with the European Union, especially with Germany, and the effective integration of leading sectors of the economy into the global value chain are considered one of the main directions of Azerbaijan’s long-term development strategy. In the article, taking into account the position of Germany in the world market, the potential of trade between the two countries was estimated based on the trade indicators of Azerbaijan. It is shown that here Azerbaijan acts as a net importer in the regions, and has a very small share in the world market. It is emphasized that the quantitative parameters of the potential for the expansion of trade relations between Germany and Azerbaijan once again show that Azerbaijan in its foreign trade relations is oriented towards the market of the CIS countries. As a result, it is noted that the structure of the German economy is supported mainly due to the increased competitiveness of the country in the global integration process.

Keywords

trade and economic relations, export, import, competitiveness, dynamic, non-oil sector.

JEL classification: F190; DOI: 10.32680/2409-9260-2019-3-266-13-36

UD classification: 339

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