In connection with the ongoing economic reforms implemented in the country to improve the investment attractive ness of the Azerbaijani regions, Caspian Energy has compiled the rating for the economic regions of Azerbaijan with the aim to identify main characteristics of the economic potential. Given the fact that Baku, as the capital, enjoys its predominant position and ranks first on all socio-economic indicators with exception of agriculture, we put it outside the rating, providing all the key performance figures of the city’s development. We ranked the regions according to 18 parameters divided into six groups. The higher result (obtained on the basis of figures from official sources specified below) a region showed according to the selected group of criteria, the more points it scored. Indicators were selected according to the interests of investors that have intentions to set up manufacturing or network business in a region.
In the process of calculating the rating according to the ‘feel-good factor’ criteria, a travel distance from the capital was taken into account together with the ‘feel-good factor’ indicators. It is noteworthy that Aran economic region topped the list on all parameters in the item “agriculture”, taking the big lead on all indicators.
Since Kalbajar-Lachin economic region of the Republic of Azerbaijan is completely under the Armenia’s occupation, there is no possibility to provide reliable economic data on this region. Azerbaijan cannot guarantee safety of businesspeople across this region in connection with the given circumstances.
• Demographic profile: the population size and the main aspect - education (number of secondary and higher education institutions per capita) were taken into account;
• Socioeconomic status: the main indicator - GDP per capita, a structure of production and a number of branches of private banks in the regions of the country (in particular, this figure reflects the demand for financial services amidst population);
• Business climate: a number of established companies and institutions, and a level of investment in fixed assets;
• Infrastructure: the main indicator – presence of an international airport, a number of railway stations, bus terminals and bus stations, paved roads, an area of rented premises;
• Feel-good factor: presence of five-star hotels and lower class hotels in large cities, a travel distance from Baku;
• Agriculture: growing area under winter and spring crops, a number of livestock farms.
