USE OF INFORMATION TECHNOLOGIES IN THE DETERMINATION OF COMPARATIVE ADVANTAGES OF THE COUNTRY IN WORLD LABOUR DIVISION Dr. Vagif Rustamov Dr. Vagif Rustamov Baku, Azerbaijan Baku, Azerbaijan Center of Economic Reforms Center of Economic Reforms AZERBAIJAN REPUBLIC AZERBAIJAN REPUBLIC MINISTRY OF ECONOMIC DEVELOPMENT MINISTRY OF ECONOMIC DEVELOPMENT CENTER OF ECONOMIC REFORMS CENTER 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 ( ) 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

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