This paper has attempted to estimate the J-curve phenomenon for Azerbaijan using quarterly industry-level data over the … period 2000-2009. A weighted average of the production indexes of Azerbaijan’s four major trading partners, which account for … 70% of Azerbaijan’s total trade turnover, was chosen as a proxy for foreign income. Ten non-oil industries, which amount …

After re-gaining its independence on 18 October 1991, the Republic of Azerbaijan started the transformation to the … used effectively; on the other hand, there was a huge demand for foreign investment for extraction. To this end, Azerbaijan … has signed “Contract of the Century” in 1994. Although Azerbaijan has wide oil and natural gas reserves, it has faced a …