ORIGINAL PAPER
The role of oil and gas industry in Azerbaijan’s economic development: investment trends and global context
1
Azerbaijan State University of Economics, Azerbaijan
2
Nakhchivan State University, Azerbaijan
3
Western Caspian University, Azerbaijan
Submission date: 2024-11-01
Final revision date: 2025-02-28
Acceptance date: 2025-03-04
Publication date: 2025-06-23
Polityka Energetyczna – Energy Policy Journal 2025;28(2):55-72
KEYWORDS
TOPICS
Energy policyEnergy economicsFuels and energy marketsEcological, economic, social and legal aspects in energy systemsRegional issues of fuels and energy
ABSTRACT
Investments in the energy sector are the primary driver of its growth. Thus, trends in capital inflows in developing countries are a relevant research area. The purpose of the study is to assess investment opportunities in Azerbaijan’s oil industry while considering its role in the national economy and current state. The research examines how oil export revenues correlate with GDP growth in Azerbaijan, highlighting the industry’s significance for economic development while acknowledging the challenges of dependency on oil exports. In particular, the relationship between the level of exports in Azerbaijan and the gross domestic product (GDP) was assessed, and the elasticity of these metrics was found. This study examined the current situation both in the world in general and in Azerbaijan in particular. The study demonstrated that the investment landscape, particularly in the energy sector, has undergone a marked change, driven by economic growth and government support, particularly in regions such as Europe, the United States, and China. This surge in investment is also determined by the urgent need for the world to switch to renewable energy. The study noted that SOCAR has become the country’s leading oil supplier, accounting for most of Azerbaijan’s total crude oil exports. Developing its operations in international markets and establishing productive economic relations is one of the company’s strategic priorities. Given that oil and gas resources play an important role in Azerbaijan’s economy, the regression method revealed a close relationship between oil exports and GDP.
CONFLICT OF INTEREST
The Authors have no conflicts of interest to declare.
METADATA IN OTHER LANGUAGES:
Polish
Rola przemysłu naftowego i gazowego w rozwoju gospodarczym Azerbejdżanu: trendy inwestycyjne i kontekst globalny
zrównoważony rozwój, stosunki międzynarodowe, strategie finansowe, inicjatywy rządowe
Inwestycje w sektorze energetycznym są głównym motorem jego wzrostu. Dlatego też trendy w napływie kapitału w krajach rozwijających się są istotnym obszarem badawczym. Celem niniejszego opracowania jest ocena możliwości inwestycyjnych w przemyśle naftowym Azerbejdżanu, przy jednoczesnym uwzględnieniu jego roli w gospodarce narodowej i obecnego stanu. Przeprowadzone badanie analizuje, w jaki sposób przychody z eksportu ropy naftowej korelują ze wzrostem PKB w Azerbejdżanie, podkreślając znaczenie branży dla rozwoju gospodarczego, jednocześnie uznając wyzwania związane z zależnością od eksportu ropy naftowej. W szczególności oceniono związek między poziomem eksportu w Azerbejdżanie a produktem krajowym brutto (PKB) oraz ustalono elastyczność tych wskaźników. W badaniu przeanalizowano obecną sytuację zarówno na świecie, jak i w Azerbejdżanie. Studium wykazało, że krajobraz inwestycyjny, szczególnie w sektorze energetycznym, uległ wyraźnej zmianie, napędzanej wzrostem gospodarczym i wsparciem rządowym, szczególnie w regionach takich jak Europa, Stany Zjednoczone i Chiny. Ten wzrost inwestycji jest również zdeterminowany pilną potrzebą przejścia świata na energię odnawialną. W opracowaniu zauważono, że SOCAR stał się wiodącym dostawcą ropy naftowej w kraju, odpowiadając za większość całkowitego eksportu ropy naftowej Azerbejdżanu. Rozwijanie działalności na rynkach międzynarodowych i nawiązywanie produktywnych relacji gospodarczych jest jednym ze strategicznych priorytetów firmy. Biorąc pod uwagę, że zasoby ropy naftowej i gazu odgrywają ważną rolę w gospodarce Azerbejdżanu, metoda regresji ujawniła ścisły związek między eksportem ropy naftowej a PKB.
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