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Azerbaijan's economy is extractive industry-led and not well-diversified. A comprehensive understanding of the role of the oil industry in the Azerbaijani economy is still a desideratum. Azerbaijan's national economy was a popular case study for the theories such as the natural resource curse (NRS) and Dutch disease (DD); however, a conclusive statement is yet to be found. Many new questions arise as the impact of the crisis periods, institutions, and monetary indicators are being explored. This working paper is nothing more than experimentation results for the Azerbaijan economy within the NRS and DD theories. Surely, not everything can be achieved from the first trial and sound accomplishments need to be built on the shoulders of the negative results and failed hypotheses tests following the already existing analytical frameworks. Despite data issues and lack of proper theoretical conceptualizations of the Azerbaijan economy, this working paper reports the results of the Ordinary Least Squares (OLS) and Robust Least Squares (RLS) to orient the follow-up studies in the near future. Despite academia argues that nowadays linear relationships are hard to obtain, this working paper's main assumption is still a linear association among the variables of interest. Despite the results from this working paper are mixed, particular negative associations between the institutional quality measured via the several political, institutional, and governance indicators, and oil-related variables are present in the case of Azerbaijan between 1996–2019. To explain, although the negative impacts of the real effective exchange rate (REER), REER growth rates, the nominal effective exchange rate (NEER), and NEER growth rates were less than expected, oil prices and changes in oil prices played a great role (negative) in the output, employment, and returns on capital in the Azerbaijani economy. Moreover, particular negative associations between the oil-related variables, and institutional, political, and governance indicators are present, whereas the quantity and quality of the education in the Azerbaijan economy do not fully reflect any serious negative impacts. These experimental models possess a high amount of stability; however, they should be treated as initial starting points. The mentioned facts must be considered by the policymakers when the non-oil development of the Azerbaijani economy is being discussed.

This report provides a review of the Armenian mining sector, and assesses its potential to contribute to sustainable economic growth and development. Based on the findings, it provides recommendations for initiatives and actions for the future development of the sector. The report was produced in the period October 2015 to April 2016. It was commissioned by the World Bank with the aim to assist the Armenian government to gain a better understanding of key social and environmental challenges and future opportunities for the Armenian Mining Sector; and to support the development of a minerals strategy which is line with international good practices and which contributes to sustainable development. The findings are based on: desktop reviews of existing documents; a large number of meetings and interviews with affected and interested stakeholders; field work performed in the main mining districts of Armenia; stakeholder workshops. Comments, suggestions and corrections on a draft version of this report has been provided by representatives of the GoA, and the World Bank. Further, oversight and feedback was continuously provided by representatives of the World Bank.