Performance Evaluation of the Fruit and Vegetable Subsectors in the Azerbaijani Economy: a Combinatorial Analysis Using Regression and Principal Component Analysis

Abstract Azerbaijan has an oil-led economy, which according to the well-known resource curse and Dutch disease hypotheses decreases role of non-oil tradable sectors. Nevertheless, government actively fostered growth sectors as export orientation is being leveraged by recently adopted economic policies. However, performance evaluations at subsectoral level remain rare. The present paper evaluates fruit vegetable subsectors in from 1995 2020 based on multiple key indicators, such production, profitability, productivity via principle component analysis (PCA). purpose study was provide a comparison two that are strong candidates for exports. results revealed subsector outperformed terms production profitability 1999 2014; however, it experienced sharp decline 2014 2015 (the period rapid commodity price downturns), gives rise question whether extractive industry negatively affected subsector. Compared subsector, demonstrated more stable upward trend. In addition, labor input both sub-sectors decreased over time, indicating efficiency gains new technology transfers enhancements. Ordinary Least Squares (OLS) statistically significant negative relationship between with oil revenue boom (2008–2015).