AN INVESTIGATION OF MACROECONOMIC PERFORMANCE OF AZERBAIJAN

Abstract

After the collapse of the USSR, Azerbaijan declared its independence in 1991, and is experiencing pains and structural problems similar to other transition economies. Although Azerbaijan had been an agricultural country for decades, oil has become the most important resource of the country in mid 1990?s. This transformation brought problems such as ?natural resource curse? and ?Dutch Disease?. The government tried to take certain precautions against these risks. In this vein, in this study, the macroeconomic performance of Azerbaijan, facing the similar problems of economies dependent on the export of natural resources will be analyzed as a case study. Besides,the macroeconomic policies applied, the problems encountered and solutions for these problems will be presented.