Dutch Disease Effect of Oil and Natural Gas on the Economy of Azerbaijan Republic

Thesis title: Dutch Disease Effect of Oil and Natural Gas on the Economy of Azerbaijan Republic
Author: Mammadzada, Kamil
Thesis type: Diploma thesis
Supervisor: Šíma, Ondřej
Opponents: Metrah, Samy
Thesis language: English
Abstract:
In this study, the Dutch disease, the main sectors of the Azerbaijani economy and the impact of the Dutch disease on the economy of Azerbaijan were examined. Thanks to the dense capital structure of the oil sector, the effect of resource allocation, which had the main impact on the Dutch disease, did not materialize. On the other hand, the effect of expenditures appeared as an increase in public expenditures in the Azerbaijani economy. At the same time, the economy of Azerbaijan is heavily dependent on the oil sector. But oil can also quickly disappear if used to meet its short-term needs. Naturally, it is a great advantage if the oil is used reasonably and to secure the long-term interests of the state. The experience of many oil countries shows that besides solving many social problems, a country can also pave the way for a serious economic decline. From this point of view, if the increase in oil profits seems positive, then its rational use is one of the most important issues. This study reflects the spending direction and investment mechanisms of the State Oil Fund. Various scenarios for investment and their pros and cons were examined.
Keywords: Dutch disease; oil sector; non-oil sector; export; investment
Thesis title: Dutch Disease Effect of Oil and Natural Gas on the Economy of Azerbaijan Republic
Author: Mammadzada, Kamil
Thesis type: Diplomová práce
Supervisor: Šíma, Ondřej
Opponents: Metrah, Samy
Thesis language: English
Abstract:
In this study, the Dutch disease, the main sectors of the Azerbaijani economy and the impact of the Dutch disease on the economy of Azerbaijan were examined. Thanks to the dense capital structure of the oil sector, the effect of resource allocation, which had the main impact on the Dutch disease, did not materialize. On the other hand, the effect of expenditures appeared as an increase in public expenditures in the Azerbaijani economy. At the same time, the economy of Azerbaijan is heavily dependent on the oil sector. But oil can also quickly disappear if used to meet its short-term needs. Naturally, it is a great advantage if the oil is used reasonably and to secure the long-term interests of the state. The experience of many oil countries shows that besides solving many social problems, a country can also pave the way for a serious economic decline. From this point of view, if the increase in oil profits seems positive, then its rational use is one of the most important issues. This study reflects the spending direction and investment mechanisms of the State Oil Fund. Various scenarios for investment and their pros and cons were examined.
Keywords: Dutch disease; oil sector; non-oil sector; export; investment

Information about study

Study programme: Finance and Accounting
Type of study programme: Magisterský studijní program
Assigned degree: Ing.
Institutions assigning academic degree: Vysoká škola ekonomická v Praze
Faculty: Faculty of Finance and Accounting
Department: Department of Monetary Theory and Policy

Information on submission and defense

Date of assignment: 24. 11. 2020
Date of submission: 15. 5. 2021
Date of defense: 8. 6. 2021
Identifier in the InSIS system: https://insis.vse.cz/zp/75289/podrobnosti

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