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Role of Economic Freedom in Attracting Investments in the Context of Azerbaijan

Author

Listed:
  • Elchin Suleymanov

    (Baku Engineering University, The Institute of Economics, Azerbaijan National Academy of Sciences, Azerbaijan,)

  • Elvin Alirzayev

    (Baku Engineering University, Azerbaijan,)

  • Mammad Talibli

    (Azerbaijan State University of Economics, UNEC, Azerbaijan.)

Abstract

Since foreign investments are crucial in developing economy and breaking poverty chain, the majority of developing countries, which suffer from the lack of investment savings in countries, enter the competition in attracting investments. In the competition, they realize that economic freedom has to be improved for investments to come to the economy as well as other freedom level indices. This paper analyzes the key factors needed to better off in order to attract investments, the linkage between foreign capital and the level of freedom of countries investigated in theory and practice, and Azerbaijan's current economic freedom level and improvements. Sharp decline in oil prices since 2015 that forced government to devaluate the currency twice lead to government reforms in non-oil sector in Azerbaijan. This study also investigates impact of Azerbaijan economic freedom level improved by economic and legislative reforms on economic freedom indices set by World Bank Doing Business and other organizations.

Suggested Citation

  • Elchin Suleymanov & Elvin Alirzayev & Mammad Talibli, 2019. "Role of Economic Freedom in Attracting Investments in the Context of Azerbaijan," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 87-95.
    • Handle: RePEc:eco:journ1:2019-01-11
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    More about this item

    Keywords

    Economic Freedom; Attract Investments; Azerbaijan Economy;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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