Human Capital and Digital Skills as Drivers of Firm-Level Competitiveness in Azerbaijan’s Transition Economy
DOI:
https://doi.org/10.69760/lumin.2025003002Keywords:
Human capital, digital skills, firm competitiveness, Azerbaijan, transition economy, digitalization, labor marketAbstract
As Azerbaijan continues its economic transition, the development of human capital and acquisition of digital skills have emerged as vital factors shaping firm-level competitiveness. This article examines the ways investments in education and digital competencies enhance productivity, foster innovation, and improve market positioning among Azerbaijani firms. Drawing from national statistics, international case studies, and relevant theoretical frameworks, this study highlights the evolving role of digital transformation within the country's post-Soviet economy. It also offers strategic recommendations and policy implications aimed at cultivating sustainable competitive advantages through human capital and digitalization.
References
Abdullayev, A. E., Asgerova, M. R., Abbasova, M. M., & Humbat, E. (2024). Global Challenges of Regional Management in The Modern World: The Main Factors Shaping the Infrastructure Base of Regional Management. International Journal, 5(11), 4639-4644.
Aliyev, R., & Mammadov, T. (2021). The impact of education on labor productivity: Evidence from Azerbaijani manufacturing firms. Journal of Economic Studies, 48(3), 556-572.
Babayev, J. (2022). Online versus offline learning. ZNANSTVENA MISEL Учредители: Global Science Center LP,(66), 24-25.
Babayev, J. (2022). Characteristics of online learning. POLISH JOURNAL OF SCIENCE Учредители: Громадська Організація" Фундація Економічних Ініціатив"= Общественная Организация" Фундация Экономических Инициатив",(50), 67-68.
Barro, R. J., & Lee, J.-W. (2013). A new data set of educational attainment in the world, 1950–2010. Journal of Development Economics, 104, 184-198.
Becker, G. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
Brynjolfsson, E., & McAfee, A. (2014). The second machine age. W. W. Norton & Company.
Estrin, S., & Wright, M. (1999). Foreign direct investment in transition economies: Theory and evidence. European Economic Review, 43(2), 329-348.
Farzaliyeva, E., & Abdullayev, A. (2025). The Economic Power of Culture: How Arts and Heritage Drive Employment. Global Spectrum of Research and Humanities, 2(3), 80-91.
Hanushek, E. A., & Woessmann, L. (2020). The economic impacts of learning losses. OECD Education Working Papers, No. 225.
Ibrahimov, E. Y., Alakbarov, A. U., Kerimova, F. B., & Alakberov, R. S. (2024). Competitiveness of AzerbaijanS T&T industry and its impact on the regional economy. Edelweiss Applied Science and Technology, 8(5), 1295-1301.
International Telecommunication Union. (2023). Measuring digital development: Facts and figures 2023. Geneva.
Kapital Bank. (2022). Annual report. Baku.
Mammadova, E., & Abdullayev, A. (2025). Cultural Industries and National Economic Competitiveness: A Global Perspective. Porta Universorum, 1(3), 322-344.
Mammadova, E., & Abdullayev, A. (2025). Protection of Cultural Heritage and Its Economic Benefit. Acta Globalis Humanitatis et Linguarum, 2(3), 180-187.
Mammadova, E., & Abdullayev, A. (2025). The Role of Cultural Heritage in Tourism Competitiveness. Porta Universorum, 1(5), 64-72.
Ministry of Economy of Azerbaijan. (2022). Economic diversification strategy. Baku.
Meyer, K. E., & Peng, M. W. (2016). Theoretical foundations of emerging economy business research. Journal of International Business Studies, 47(1), 3-22.
OECD. (2019). Skills for a digital world. OECD Publishing.
OECD. (2020). Education at a glance 2020. OECD Publishing.
OECD. (2022). OECD science, technology and innovation outlook 2022. OECD Publishing.
Porter, M. E. (1990). The competitive advantage of nations. Free Press.
Powell, W. W., & Snellman, K. (2004). The knowledge economy. Annual Review of Sociology, 30, 199-220.
Schultz, T. W. (1961). Investment in human capital. American Economic Review, 51(1), 1-17.
State Statistical Committee of the Republic of Azerbaijan. (2023). Labor market statistics. Baku.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
USAID. (2021). Workforce development in Azerbaijan: Challenges and opportunities. USAID Azerbaijan Program Report.
World Bank. (2019). Digital economy for Azerbaijan: Leveraging digital for inclusive growth. World Bank Group.
World Bank. (2022). Azerbaijan economic update. Washington, DC.
World Bank. (2023). Azerbaijan country overview. https://www.worldbank.org/en/country/azerbaijan
World Economic Forum. (2021). The future of jobs report. Geneva.
Гасымов, Д. Ю., & Алекперов, А. У. (2013). ВОПРОСЫ ИЗУЧЕНИЯ ОСОБЕННОСТЕЙ УПРАВЛЕНИЯ В НОВЫХ ЭКОНОМИЧЕСКИХ УСЛОВИЯХ. SCIENCE AND WORLD, 55.
Рустамов, А. А. О., & Алекперов, А. У. О. (2012). Влияние социально-экономического развития Нахчыванской Автономной Республики на продовольственный рынок региона. Международный технико-экономический журнал, (4), 29-31.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Luminis Applied Science and Engineering

This work is licensed under a Creative Commons Attribution 4.0 International License.