BALANCE OF PAYMENTS AS AN ECONOMIC MECHANISM FOR REGULATING INTERNATIONAL BUSINESS

Abstract

This article analyzes the role of the balance of payments in regulating Azerbaijan’s international economic relations. The balance of payments is the main statistical mechanism reflecting the country’s operations in foreign trade, services, income and transfers. The study examines the components of the balance of payments for 2010–2024, the dynamics of deficit and surplus, as well as the role of the oil and gas and non-oil sectors. Based on statistical data and time-series analysis, the causes and consequences of the changes recorded in the balance of payments are identified. The time-series analysis shows that among the main factors affecting Azerbaijan’s balance of payments are volatility in global oil prices, import and trade restrictions applied during the COVID-19 pandemic, and the development dynamics of the non-oil sector.