The Dutch Disease Syndrome Side Effects in Manufacturing Employment: A VAR Analysis of the Azerbaijan Economy

After the painful transition process from a command economy to a market economy, Azerbaijan used its rich hydrocarbon resources to promote economic growth and development. As a result, national income and per capita income soared, infrastructure improved, and poverty was reduced. However, Azerbaijan's economy seems to have been caught up in the negative effects of the oil boom. In other words, non-oil tradeable sectors such as manufacturing have not been able to build on the success and gain a high share of output, employment, and exports due to the increase in the real effective exchange rate... Mehr ...