Importance of oil and non-oil sectors in Azerbaijan economy

On the 18th of October 1991, Azerbaijan had gained its independence from USSR and declared it officially. For the purpose of using its natural resources Azerbaijan have signed "The Contract of Centruy"in 1994. After this agreement, oil sector of Azerbaijan`s economy permanentlystarted to develop. In the begining, that agreement helped a lot to stabilize the economy. But dependence of economy from oil exports, actually occured some obstacles to develop other branches.Because, quickly improving only oil sectors have been made a deep dependence from natual resources in the upcoming years. İn this context, the goal of the thesis is to explore the dependence of growth and export of Azerbaijan`s economy from oil sectors making a research on the economic effect of oil sector the. İn this thesis, the impact of oil sectors on the economical increase and export of Azerbaijan was trialed. Variousdatas were used between 1991-2017. İn the thesis, firstly, previous researches and findings connected to the topic was evaluated and litterature scanning was carried out.İn the second chapter,has been estimated the overall economy of Azerbaijan, has been touched uponthe importance of oil sectors in the economy and has been mentioned the developing of possibilty of non-oil sectors. Furthermore, economic effect of oil sectors has been estimated while econometric analyse was doing and the results has been evaluated. As a conclusion, estimations showed that the incomes from oil resources can make a positive effects on economy`s increase for the short term. It seems exports depends on oil sectors for the long term. There is a crucial need to avoid this dependence for the steady increase. İn this context, it emerges the necessity of developing of non-oil sectors instead of getting just export`s revenue. Azerbaijan`s economy, independent from exports` incomes, will be able to grow steadily with non-oil sectors` development.