Analysis of physical economic theory implementation efficiency in the economic activity of Azerbaijan

Abstract

The physical and economic theory is under-investigated and has no clear definition of its determinants. The main goal of the economic activity of any country is the generation of capital and progress. Azerbaijan is characterised by economic growth, which is accompanied by the country's material resource usage and production of goods by using energy resources and a labour force. The rational use of material resources is quite important, which is the basis for the formation of the country's profitability and the introduction of innovations. That is why the issue of physical economic theory implementation in the economic activity of Azerbaijan is relevant. Establishing the effective use of physical economics in the functioning of the country will help identify the main flaws and develop the main ways to improve the economic activity of Azerbaijan. That is why the study aims to investigate and generalise the aspects of physical economic theory implementation in the economic activity of Azerbaijan. By using the induction method, the determinants of the physical economy were established, which include indicators of industry, energy, trade, and human capital. The analytical method determined that although the economy of Azerbaijan employs a physical economy efficiently, there are problems with the development of production, energy consumption, and labour force. As such, it was determined that the main ways to improve the efficiency of the physical economic theory implementation in the economic activity of Azerbaijan should be: the development and implementation of measures to increase the efficiency of beverage and tobacco, mineral fuel, lubricant, and related material production and employment of measures to reduce energy consumption in the production of non-metallic minerals, iron and steel, chemical and petrochemical products, non-ferrous metals through the introduction of innovative technologies. At the same time, the number of jobs should be increased, the skills of workers should be developed, and the quality of education in Azerbaijan should be improved following international standards. As such, the practical value of the research is predetermined by the characterisation of the main determinants of the physical economy of the country, which can be used in further scientific research to analyse the effectiveness of the physical economic theory implementation in the economic activity of countries