USE OF INFORMATION TECHNOLOGIES USE OF INFORMATION TECHNOLOGIES IN THE DETERMINATION OF IN THE DETERMINATION OF

COMPARATIVE ADVANTAGESCOMPARATIVE ADVANTAGES OF THE COUNTRY IN WORLD OF THE COUNTRY IN WORLD

LABOUR DIVISIONLABOUR DIVISION

Dr. Vagif Rustamov Dr. Vagif Rustamov Baku, AzerbaijanBaku, Azerbaijan

Center of Economic ReformsCenter of Economic Reforms

AZERBAIJAN REPUBLICAZERBAIJAN REPUBLIC MINISTRY OF ECONOMIC DEVELOPMENTMINISTRY OF ECONOMIC DEVELOPMENT

CENTER OF ECONOMIC REFORMSCENTER OF ECONOMIC REFORMS

Main Problems of Azerbaijan economy after the independence:

Considerable problems in making the transition from a command to a market economy;

Loss of traditional markets; Needs diversify of economy and structural

reforms; Social-economic problems of Refugees and IDPs For this purpose, it is of great importance to define the

sectors (products) and sub-sectors of economy which have comparative advantage in world labour division

BACKGROUND

Methodology

1. The Balassa index (Bij):

Bij = Xij/Xiw

Xij - share of service (or good) i in country j’s

total exports

Xiw - share of good i in total world exports

2.The next export ratio (NERij): NER ij= (Xij – Mij) / (Xij + Mij)

Xij - the exports of good (or service) i by

country j

Mij - the imports of good i into country j

Methodology

3. Finger and Krein index (Export similarity): n XS = Σ min (Xia, Xib) i=1 Xia – share of good i in the export of country A Xib - share of good i in the export of country B

Methodology

Data

World integrated Trade Solution (the World Bank) database

PC–TAC trade statistics (World Trade Organization) database.

This database provides information on the exports and

imports of different categories of goods for a sample of 183 countries. Data base of last 3 years (2000-2002) were

used for the calculations.

Conclusions

1.Comparative advantage of Azerbaijan:

Agriculture - tobacco, apple, nuts, tea, vegetables, oil seeds, raw cotton, and pharmaceutical plants growing

Processing - fruit juices, cigarettes, manufactured tobacco, animal skins, cotton linters, carded and combed cotton, cotton seed oil, safflower oil

Oil industry - kerosene and medium oils, motor spirit and light oils, gas oils, fuel oils

Chemical and petrochemical industry - ethylene, polyacetals and polyethers, polyethylene and plastics

Conclusions

2. Potentially advantage of Azerbaijan:

• Products of petrochemical and chemical sector (lactams and lactones, tyres for bus or lorry,

polyvinyl chloride, sulphur (excluding, purified), nitrogenous fertilizers photo film)

Conclusions

• textile industry Woven jackets, blazers, swimwear, hat shapes and other products of might be developed in near future, too.

• Oil seeds flour and meal, barley grain, fine animal hair, salted, frozen, preserved and dried fish liver, not frozen crustaceans, cereal (non-wheat) flour, cereal meal, cereals breakfast foods, sugars, syrups, malt, malt flour, natural honey, combed and carded wool

Conclusions

The study shows that, it is possible to get valuable strategic results by using information technologies in research works

We would further recommend that, information technologies in research works must be used widely and more frequently

THANK YOU THANK YOU

FOR YOUR ATTENTION!FOR YOUR ATTENTION!