Analysis of regional markets for heavy industry and machine building products (in the example of Azerbaijan economy)

Abstract

The presented article analyzes regional markets, for heavy industry and machine building products for the Azerbaijani economy. In terms of trade relations and territory, the markets of Turkey, the Russian Federation, Georgia, the Islamic Republic of Iran, Moldova, Belarus, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Armenia were selected and evaluated. The database of the study consists of mutual import and export data for the mentioned countries in 2014–2018. Based on the import-export data collected covering the years 2014–2018 on six-digit codes of regional markets, the revealed comparative advantage and localization coefficients on import and export were calculated. As a result, importing and exporting countries have been identified in the regional markets through the calculated coefficients for each of the 5 years of heavy industry and machine building products considered. Thus, in terms of imports and exports, the countries with the highest coefficients were selected.