Using macro-data, the authors analyse the impact of macroeconomic growth on poverty reduction in Azerbaijan. Their results suggest a small correlation between economic growth and poverty reduction in this country. As to the effect of employment on power reduction, it differs across economic sectors: Such sources of income as catering business and the mining and quarrying sector have a stronger positive effect on poverty reduction than others. Only the agricultural sector plays a negative role in this matter. The article also demonstrates that sectors that play a crucial role in job creation and in wage incomes do not have a significant share in total GDP. Because of the dominant share of the oil sector to total GDP, and this sector’s small share on employment, macroeconomic growth has no significant effect on new jobs ― a domain in which the dominant role in job creations is devoted to education, health and social services, and transport sectors.

The Redaction
CER: II-7.3.C-604