Non-oil Industries Research Articles

IMPROVEMENT OF THE MANAGEMENT SYSTEM OF FACTORS THAT HINDER THE DEVELOPMENT OF THE NON-OIL INDUSTRY BASED ON INTERNATIONAL EXPERIENCE

The study of the problems of improving the mechanism of the management of the factors that slow down the development of the non-oil industry confirms the instability of the development rates of the Azerbaijani industry in 2005-2021, the disparities in the development of the industry in the production and processing areas, as well as in the regions. As a result of the study, the classification of internal and external factors that hinder the development of the non-oil industry is justified. Application of ISO standards in enterprises operating for the creation of a non-oil industry based on innovative economy, a new concept of regulation of production activities based on the data of technical projects, technical and economic justifications and project estimates were presented as the main direction of improving the management system of factors that hinder the development process of the non-oil industry. The relevance of the subject. In recent years, factors such as creating an inter-sector balance and effective use of natural and material resources have played an important role in ensuring economic stability in our country, but it is necessary to solve the economic and institutional regulation issues related to the development of the non-oil sector of the industry. Because ensuring the development of the non-oil sector has been set as a priority direction and main task of the state’s economic policy. The main goal in the implementation of the specified task is to increase the level of welfare of the population, transition to an export-oriented economy and improve the competitiveness of the economy. From this point of view, the relevance of the research of the subject is not in doubt. The purpose of the article. The main goal of the research is to create an effective management structure, which ensures the elimination of obstacles that slow down the development of this section of the industry, taking into account the role of the non-oil industrial sector in ensuring the sustainable development of the country’s economy and raising the standard of living of the population, through the formation and evaluation of a qualitatively new model of sustainable economic development of added value growth and structural changes in production areas and enterprises. Elucidation of practical aspects of using the concepts «technical structure of production», «organic structure of capital and turnover rate» to improve the management system of non-oil industries and enterprises, which are considered as objects of study of economic theory, is a priority direction of research. Research methods. The article was written on the basis of scientific research methods which includes theoretical analysis, systematic analysis, statistical analysis, generalization, comparative structural analysis, etc. Scientific innovation. In the article, based on the analysis of the production structure and current situation of the non-oil industry in 2005-2021, the classification of the obstacles that slow down the development of the industry was justified for the first time, and specific proposals for their elimination were put forward. Acknowledging the dependence of solving issues such as the application of ISO standards in the non-oil industry sector and the admission of the Republic of Azerbaijan to the World Trade Organization on the condition of ensuring the quality and safety of goods and services, determination of the technical structure of production on the basis of project-estimate documents and proposals for regulating the distribution of income (profit) according to the capital structure and turnover rate should be evaluated as innovative development directions of management in the industry.

Effects of Taxes on the Development of the Non-Oil Industry Sector: The Case of Azerbaijan

A panel analysis of the relationship between corporate tax rates and GDP per capita, economic growth rate, total capital formation, and non-oil product volume proves that these variables’ dependency on corporate tax rates is weaker. The main finding of the study is that there is a negative relationship between the volume of non-oil industrial products and taxes in Azerbaijan. Based on the results of the research, it can be argued that neither corporate taxes nor general taxes have a significant impact on the production volume of non-oil industrial products in Azerbaijan in the short term. However, there is a negative relationship between taxes and the volume of production of non-oil industrial products in the long run.

THE IMPORTANT ROLE OF CREDIT IN THE DEVELOPMENT OF AGRO-INDUSTRIAL SYSTEMS: SUPPORTING AGRICULTURAL GROWTH AND ECONOMIC DEVELOPMENT

The purpose of the research is to explore and highlight the critical role of credit in the advancement of agro-industrial systems, with a focus on how it supports agricultural growth and contributes to wider economic development. The methodology of the research - the study uses a comprehensive review of existing literature, case study analysis, and synthesis of data from government policies, financial institutions, and agricultural cooperatives to examine the multifaceted impact of credit in an agro-industrial context. The practical importance of the research - the findings of this study offer practical insights for policy makers, financial institutions and stakeholders in the agricultural sector and provide them with valuable guidance on how to promote credit availability and optimize its impact on agro-industrial development. The results of the research - the findings of this study highlight critical strategies for enhancing competitiveness in non-oil industries. The originality and scientific novelty of the research - the study offers an original perspective on the multifaceted and interconnected benefits of credit in agro-industrial systems, highlighting the importance of sustainable practices and financial inclusion, thus contributing to scientific innovation in understanding the vital role of credit in promoting agricultural growth and economic development.

THE GROWTH OF NIGERIA'S ECONOMY FROM 1981 TO 2019 IN RELATION TO THE FINANCING OF AGRICULTURE

The analysis of various economic variables in Nigeria from 1981 to 2019 shows that the country’s economy has been heavily reliant on oil exports, which has left it vulnerable to external shocks and hindered economic growth. This over-reliance on oil exports has led to neglect of the agricultural sector, which was once the main source of foreign currency earnings for Nigeria. As a result, there has been a decline in food production and an increase in imports. However, a study investigating the impact of government spending on agriculture on Nigeria’s economic growth using secondary data covering the same period shows that investing in agriculture is essential for Nigeria to achieve a diversified economy and sustainable economic growth. The study uses the Ordinary Least Square (OLS) approach and the Augmented Dickey-Fuller (ADF) unit root test to analyze the data and concludes that diversifying the economy into non-oil industries, such as agriculture, is likely to have a significant impact on economic growth. The regression analysis showed that government agricultural spending has a positive impact on economic growth. The findings suggest that RGDP, AO, AL, AE, and IFR had an up-down tendency, while INT had an up-down-up trend. The skewness statistic indicates that the variables’ frequency distributions were positively skewed, while the Kurtosis statistic indicates that they were normally distributed. The unit root tests indicate that all variables were stationary at 5%. The regression analysis showed that AO had a positive association with RGDP, while AL had a negative association with it. The study also provides additional information, such as the contribution of agriculture to Nigeria’s GDP and the statistical reliability of the variables.

COMPLEX OF MEASURES TO IMPROVE RISK MANAGEMENT MECHANISMS AT OIL ENGINEERING ENTERPRISES

The article reflects the need for risk management at oil engineering enterprises. Here the category of risk is considered as "probability of loss, threat". The main risks affecting oil engineering enterprises, arising from both external and internal risk factors, are systematized. To analyze and assess industry risks, the factors for assessing the activities of enterprises are reflected in detail. The article also discusses the causes of structural risks. For a more refined analysis, their main indicators are described. A model is also presented that allows you to determine the areas of influence more accurately on the efficiency of the enterprise. In conclusion, a conclusion is made about integrated risk management, which will precisely allow us to resist negative impacts, ensuring the sustainability of this sub-sector. Keywords: oil engineering enterprises, innovative development, risks, capital, non-oil industry enterprises, financial indicators.

EXİSTİNG PROBLEMS İN THE SPHERE OF DEVELOPMENT OF İNTERNATİONAL TRADE İN THE REPUBLİC OF AZERBAİJAN

EXİSTİNG PROBLEMS İN THE SPHERE OF DEVELOPMENT OF İNTERNATİONAL TRADE İN THE REPUBLİC OF AZERBAİJAN

An Analytical Study of Foreign Direct Investment in the Gulf Cooperation Council (GCC)

The aim of this paper is to identify the critical determinants in the Gulf Cooperation Council (which will be referred to as GCC) for Foreign Direct Investment (FDI) inflows. Using the understanding of financial econometrics, the study discusses a significant positive association between FDI in Non-oil industries, while on the contrary, the negative association with the Oil industries. Natural resources are a path for some countries to attract FDI. Still, it does not achieve the main benefits of FDI, which are the introduction of new technology and the offering of job opportunities. Existing literature argues the suggestion that resource-rich countries attract less FDI because of resource (oil) price volatility. Statistical Models in Economics are used to analyze the data to achieve a conclusion. This study examines that natural resources discourage FDI in GCC countries, and helps identify policy reform priorities to support diversification and growth in the GCC through foreign investment.

An Investigation of Saudi Arabia’s Ambitious Reform Programme with Vision 2030 to Incentivise Investment in the Country’s Non-Oil Industries

Background/Objectives: Vision 2030 of Saudi Arabia is an important project that mainly targets the reduction in dependency on the oil economy through the growth of non-oil Industries. This study investigates Saudi Arabia’s effort for Vision 2030 to incentivise investment in the non-oil industry’s growth. Material and Methods:A sample of 225 employees of the non-oil industries of Saudi Arabia was selected as sample participants. A survey was conducted for data collection, and SPSS software was used to analyse the data. Findings:The findings indicate that sig values for all tests were 0.000 < 0.05 to support the selection of an alternative hypothesis. Therefore, it can easily be determined from the analysis that a more robust relationship is present between Vision 2030 with incentivised investment, economic stability, and financial accommodation.The advantages of reform programs have been effective in non-oil industries of Saudi Arabia to increase production standards and obtain more customer engagement.Conclusion: This research contributes to providing a straightforward concept in Vision 2030, which is Saudi Arabia’s reform program to develop the economic condition of Non-Oil Sectors. Hence, reform in the policy for economic stability can help to maintain the growth of different sectors and can further support financial assets.

Ecosystem services valuation using InVEST modeling: Case from southern Iranian mangrove forests

As one of the most fertile ecosystems on earth, mangrove forests provide many goods and services for humanity. Mangroves are located in the south of Iran on the coasts of Sistan and Baluchistan, Hormozgan and Bushehr provinces, which include two species of Harra (Avicennia marina) and Chandal (Rhizophora mucronata) The purpose of this study was to describe the condition of mangrove forests using the integrated valuation of ecosystem services and tradeoffs (InVEST) between 2010 and 2021 from the southern coasts of Iran. The INVEST model uses land use and land cover maps to estimate habitat quality. With the opinions of local experts, sources of threats, maximum impact distance, state of degradation, and sensitivity to threats were also estimated for each type of land use cover. Urban and rural areas’ development, roads network, piers, oil and non-oil industries, agriculture, and aquaculture activities, were identified as sources that threaten mangroves’ long-term viability. The output maps of the INVEST habitat quality model included degradability and habitat quality maps, which were classified into four categories: poor, low, medium, and high, to better understand quality changes. The results demonstrated that mangrove habitat quality has decreased considerably despite the increase in their area. The area of the target habitats has been increased by 586.45 ha while two first quality categories, including poor and low classes, increased. Based on a habitat quality assessment in 2010, two classes of poor, low habitat quality, were estimated to be around 0.72, and 8.42 ha, which changed to 3.04 ha, and 9.72 ha respectively in 2021. The output maps obtained in this study can help local managers and decision-makers to have an image of what happened to the quality of the target ecosystems and may help them to adopt more effective management strategies for the conservation of these ecosystems.

Transitioning Away from an Oil-based Economy through Saudi Arabia’s Vision 2030

To modify the economy and make it less dependent on oil, several initiatives were launched by the Kingdom of Saudi Arabia in 2016 under the Saudi Vision 2030 umbrella. This study looked at the financial impact of Saudi Vision 2030 and assessed whether non-oil industries have responded as desired. Since the implementation of Saudi Vision 2030, several industries have demonstrated noteworthy accomplishments and contributed to the GDP of Saudi Arabia. Three such industries—tourism, small and medium-sized enterprises, and the “Saudi Made” logo campaign—were the subject of this study. The analytical objective of this research was to determine if these industries strengthen the economy of the country and ultimately lessen its dependency on oil revenue. This analysis utilized secondary data gathered from published news, online articles, and various public sector records, including government and private bodies through their annual reports, alongside figures from the Saudi Arabian Monetary Authority. The results indicate that gains are being made toward the strategic objectives of the Saudi Vision 2030. KEYWORDS Arabian monetary, growth-led-tourism hypothesis, medium-sized enterprises, post-oil economy, Saudi tourism, small enterprises

An Analytical Study of Foreign Direct Investment in the Gulf Cooperation Council (GCC)

The aim of this paper is to identify the key determinants in the Gulf Cooperation Council (which will be referred as GCC) for Foreign Direct Investment (FDI) inflows. Using the understandings of financial econometrics, the study discusses a significant positive association between FDI in Non-oil industries, while on the contrary, the negative association with the Oil industries. Natural resources are a path for some countries to attract FDI but it does not achieve the main benefits of FDI, which is introduction of new technology and offering job opportunities. Existing literature argues the suggestion that resource-rich countries attract less FDI because of resource (oil) price volatility. Statistical Models in Economic are used to analyze the data in achieving the conclusion. This study examines that natural resources discourage FDI in GCC countries, and helps identify policy reform priorities to support diversification and growth in the GCC through foreign investment.

The Dynamic Impact of Oil Price on Investor Sentiment in Tehran Stock Exchange: An Industry-Level Analysis

Investor sentiment is one of the non-fundamental factors that affect the financial markets, which itself is influenced by various factors, including oil price changes. This study aims to investigate the impact of oil price on investor sentiment in stock market industries in the Tehran Stock Exchange (TSE) using monthly data from April 2010 to June 2020. To investigate this issue, stock exchange industries were grouped into three categories: total industries, oil-related industries, and non-oil industries, and the effect of oil prices on investor sentiments in these three groups was examined using the pooled mean group (PMG) technique. The PMG approach considers both the short- and long-run relation between series and provides reliable results in the context of dynamic heterogeneous panel models. The implementation of PMG in all three models shows the impact of oil prices on investor sentiment over both the short and long run. Findings suggest also that oil price has positive and significant in all three models in the long run and the oil price coefficient is higher in oil-related industries than non-oil-related industries. These results are the opposite of the results obtained by similar studies, which can be due to the special features of countries, e.g. being oil exporters or oil importers

QEYRİ-NEFT SEKTORUNUN İNKİŞAFINDA İNVESTİSİYALARIN ROLU VƏ ƏHƏMİYYƏTİ

In this article, the author A.S.Guluzade analyzes the current situation, the conditions created to ensure the development of the non-oil sector, as well as the role and importance of national and foreign investments in the development of the non-oil sector. Key words: non-oil sector, investments, enterprises, agriculture, tourism, light and heavy industry, mining and processing industry, modern technologies

Oil shocks and corporate payouts

This study uses a novel method of segregating oil price shocks into demand- and supply-driven contributors to examine their impact on the corporate payouts of US companies. Using a large sample of data comprising 106,753 to 115,853 observations over the 1985–2019 period, our firm fixed-effect regression estimates show that oil demand shocks substantially increase corporate payouts through greater share repurchases (but lower cash dividends), whereas oil supply shocks reduce payouts mainly through fewer share repurchases. Further analysis reveals that these effects are driven predominantly by non-oil producers (i.e., oil user groups) as oil shocks generally have no significant bearing on the corporate payouts of oil-producing firms (except cash dividend reductions during oil supply shocks). Our findings suggest that oil demand shocks, which signify economic growth, prompt non-oil industries to substitute cash dividends with stock repurchases to signal better future prospects. On the other hand, oil supply shocks induce uncertainty about future prospects, which prompts non-oil industries to reduce their corporate payouts. Overall, our findings contribute to the energy finance literature by revealing the role of differentiated oil shocks in explaining corporate payout policies.

Exchange Rate Volatility and Sectoral Analysis of Non-Oil Export in Nigeria

Abstract The paper seeks to assess the industry-based effect of exchange rate volatility on the export of non-oil sector in Nigeria. Theoretically and empirically, volatility-trade link is ambiguous. The paper employed bound test for co-integration between exchange rate volatility and exports of non-oil products. Empirically, the results show that we can accept the hypothesis of no co-integration between volatility and export of non-oil industries in most cases. Therefore, the study concludes that the exchange rate volatility can actually produce negative effect on non-oil export industries in the short-run especially the big industries (Agriculture, food and manufacturing) but this effect does not linger into the long-run and this suggests that most of these industries have been able to develop a mechanism to cope with exchange rate volatility problem in the long-run.

DETERMINANT OF FINANCIAL DISTRESS: THE CASE OF PULP & PAPER COMPANIES REGISTERED IN INDONESIA STOCK EXCHANGE

The pulp and paper industry contributes to the Indonesian economy, especially to the non-oil and gas processing industry. Empirical research shows that pulp and paper companies listed on the Indonesia Stock Exchange (IDX) indicated financial distress. This study aims to find the effect of liquidity, leverage, profitability, and efficiency on pulp & paper companies' financial distress listed on the IDX. Using the Altman Z-score as a measure of financial distress, it was found that profitability, efficiency, and liquidity had a significant adverse effect on financial distress. In contrast, leverage had a significant positive effect on financial distress. Profitability has the greatest influence on financial distress, so it needs the primary intention of management. Keywords: financial distress, liquidity, profitability, leverage, efficiency

ECONOMETRİC MODELS OF DURABLE AND STABLE ECONOMİC DEVELOPMENT OF AZERBAİJAN İNDUSTRİAL ENTERPRİSES

If should be noted that means gained as a result of development of oil industry have to be directed to develop non-oil industry due to the market requirements. Additionally we can emphasize that new economic models have been worked out to develop more effeciently industrial enterprises in the market relations. In connection with it strategical road map on the economic perspectives “State Program on the development of Azerbaijan Republic industry for 2015-2020-s” accepted on 6 December 2018, has been considered to speed industrializing process. Measurements plan is carried out. Due to the industrializing policy developing cosmic, defence, alternative energy, ship-building and other new fields have been created. Besides new industrial and refining enterprises began to be operated successfully.

Chronic PAH exposures and associated declines in fish health indices observed for ten grouper species in the Gulf of Mexico

Ten grouper species grouper (n = 584) were collected throughout the Gulf of Mexico (GoM) from 2011 through 2017 to provide information on hepatobiliary polycyclic aromatic hydrocarbon (PAH) concentrations in the aftermath of the Deepwater Horizon (DWH) oil spill. Liver and bile samples were analyzed for PAHs and their metabolites using triple quadrupole mass spectrometry (GC/MS/MS) and high-performance liquid chromatography with fluorescence detection (HPLC-F), respectively. Data were compared among species and sub-regions of the GoM to understand spatiotemporal exposure dynamics in these economically and ecologically important species. Significant differences in the composition and concentrations of PAHs were detected spatially, over time and by species. The West Florida Shelf, Cuba coast and the Yucatan Shelf had a greater proportion of the pyrogenic PAHs in their livers than the other regions likely due to non-oil industry related sources (e.g., marine vessel traffic) in the regional composition profiles. Mean liver PAH concentrations were highest in the north central region of the GoM where DWH occurred. Biliary PAH concentrations and health indicator biometrics initially decrease during the first three years following the DWH oil spill but significantly increased thereafter. Increased exposures are likely explained by the resuspension of residual DWH oil as well as continued inputs from natural (e.g., seeps) sources and other anthropogenically derived sources (e.g., riverine runoff, other oil spills, and leaking oil and gas infrastructure). The increasing trend in PAH concentrations in the bile and liver of grouper species in the north central region of the GoM post-DWH suggest continued chronic exposures, however the critical stage at which permanent, irreparable damage may occur is unknown. Long-term monitoring of PAH levels and associated fish health biomarkers is necessary to evaluate impacts of chronic exposures, particularly in regions subject to intensive oil extraction activities.

Artificial Neural Network Pada Industri Non Migas Sebagai Langkah Menuju Revolusi Industri 4.0

The research conducted aims to make predictions with artificial neural metwork (backpopagation) and sensitivity analysis in the non-oil processing industry for the value of industrial exports. Data was obtained from the Badan Pusat Statistik (BPS) in collaboration with the Ministry of Industry of the Republic of Indonesia in the last 7 years (2011-2017). The process is carried out by dividing the data into 2 parts (training and testing) to obtain the best architectural model. The data processing uses the help of Matlab 6.0 software. Model selection is done by try and try to get the best architectural model. In this study using 7 architectural models (15-2-1; 15-5-1; 15-10-1; 15-15-1; 15-2-5-1; 15-5-10-1 and 15- 10-5-1) who have been trained and tested. By using the help of Matlab 6.0 software, the best architectural model is obtained 15-2-1 with an accuracy rate of 93%, epoch training = 189,881, MSE testing = 0.001167108 and MSE training = 0,000999622. The best architecture will be continued to predict the non-oil industry based on the most dominant export value using sensitivity analysis. From the architectural model a prediction of 5 out of 15 non-oil and gas industries contributes: Food & Beverage Industry, Textile & Apparel Industry, Basic Metal Industry, Rubber Industry, Rubber and Plastic Goods and Metal Goods Industry, Not Machines and Equipment , Computers, Electronics and Optics.

NATURAL RESOURCE EXTRACTION AND ECONOMIC PERFORMANCE OF THE NIGER DELTA REGION IN NIGERIA

The effect of natural resource extraction on regional and sub-national economic growth has only recently started to generate discussions in energy and regional economics literatures. This paper investigates this issue for the oil producing (Niger Delta) region in Nigeria using a panel data modelling framework. Empirical results from the analysis show no significant relationship between direct extractive activities on the internally generated revenue of each state. However, there is strong statistical evidence that show extractive activities impact positively on the total state level revenue - in the form of production-based derivation fund that accrues to oil producing states. In addition, the extractive activities positively and significantly affect each state’s gross domestic product and its disaggregated industries (petroleum and services). However, the impact of the natural resource extraction on the non-oil industry (manufacturing) is negative and not statistically significant. So, the results obtained renders inconclusive, the argument of a possible existence of the “resource curse” at the subnational level in Nigeria. Conclusively, natural resource extraction has positive significant impact on the economic performance of states in the oil-producing region, in contrast to the negative impact at the national level. The results bring to the fore, the need for diversification away from oil to other sectors – especially in within petroleum resource-rich regions/states of the Nigeria. The outcome of the study further highlights another policy issue of better managing oil-resource revenues towards achieving national economic goals including SDGs.