State intervention instruments in Azerbaijan and Turkey and their effectiveness in terms of liberal/capitalist and socialist economic approaches

This master thesis examines the effectiveness of state intervention tools in Azerbaijan and Turkey, considering their respective economic approaches of liberal/capitalist and socialist economies. The study aims to provide insights into the impact of state intervention on economic performance and compare the outcomes of these tools within different economic systems. The research focuses on various state intervention tools, including fiscal policy, monetary policy, industrial policy, trade policy, and infrastructure development. By employing a comparative analysis, the thesis evaluates the effectiveness of these tools in terms of economic growth, employment rates, income distribution, and social welfare outcomes. The findings reveal that state intervention tools have varying degrees of effectiveness in each country. In Turkey, targeted state intervention contributes to sustained economic growth, increased employment, and improved income distribution, but challenges related to income inequality and resource allocation persist. In Azerbaijan, extensive state intervention facilitates resource management and the development of key industries, leading to positive outcomes in terms of social welfare programs and poverty reduction efforts. However, challenges such as diversification, transparency, and market-oriented reforms are identified. The research concludes by recommending a balanced approach that combines state intervention with market forces, improves governance and transparency, and promotes market-oriented reforms to enhance the effectiveness of state intervention tools in both liberal/capitalist and socialist economic approaches. This study contributes to the field by providing a comparative analysis, policy recommendations, and insights into the contextual factors influencing the effectiveness of state intervention tools. It calls for future research to expand the comparative analysis to include more countries, conduct longitudinal studies, and incorporate qualitative research methods for a comprehensive understanding of state intervention and its impact on economic performance.