The Role of Special Economic Zones in Azerbaijan in The Country's Non-Oil Sector

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Summary

Special Economic Zones (SEZs) are designated areas that can significantly enhance production, reduce unemployment, increase exports, and positively impact various macroeconomic indicators. This study aims to analyze the economic performance of SEZs in Azerbaijan and examine their role within the national economy. The research focuses on Industrial Parks and Industrial Districts, the primary types of SEZs in Azerbaijan. It investigates their contributions to the economy and their effectiveness in attracting foreign investment. A regression analysis was conducted to assess the performance of these SEZs over the years and to forecast their potential future contributions. Particular emphasis was placed on the role of SEZs in Azerbaijan's non-oil sector, leading to well-supported findings. The study concludes that to sustain the positive development trends
associated with SEZs, it is crucial to attract increased investment in this sector in the near future. Based on these findings, the article offers recommendations to strengthen SEZ activities in the Republic of Azerbaijan.