Economic Development and Diversification Ranking of Azerbaijan’s Administrative Districts: Comparative Analysis

Abstract

All the countries try to achieve the balance between the social-economic development of their regions. There are of course serious reasons for that. Economic disproportions among the population pave the way for serious consequences, it causes both internal and foreign migration, and in particular, in multinational and multi-confessional countries it even causes public outcry. In this research, for the first time, Azerbaijan’sRegional Economic Development and Diversification Index (REDDI Index) was calculated and comparative analysis made based on the developed rankings of the districts. The REDDI Index is a composite indicator estimated as weighted mean of the 2nd sub-index. The sub-indexes are as follows: The sub-index for the static level of the economic development (SLED) and Field Diversification (FD) sub-index. The first sub-index assesses the current development level of the economy, while the second measures its stability and sustainability degree.