The Stages of Development of The Transition Economy: The Case of Azerbaijan

Abstract

The main objective of this research is to give detailed information regarding the stages of development of the transition economy in Azerbaijan. A transition economy is an economy that is changing from a centrally planned economy to a market economy. The formation of socio-economic relations and the study of the legality of its activities were of significant theoretical and practical importance in the Republic of Azerbaijan during the transition period. When studying the theoretical principles of transition economies in the image of any particular country, it is important to remember that in the early stages of transition, neither the principles of the old economic system nor the new economic system work. In these circumstances, economic relations are often shaped by non-economic, subjective, and external factors. As the two economic systems operate in a transitional period, the mechanism for stabilizing and regulating the mixed economy at the same stage is also different. The transition to a market economy is not sufficiently propagated as a system of economy, which has led to some negative social and economic consequences. The main goal of the transitional period is to create conditions for economic life to be based on natural opportunities and intellectual potential.