DIGITAL TRADE, GOVERNMENT POLICY, AND ECONOMIC GROWTH: THE CASE OF AZERBAIJAN

Abstract

Digital platforms provide significant opportunities to expand international trade, improve market accessibility, and support the participation of small and medium-sized enterprises (SMEs) in global value chains. In 2016, the Government of Azerbaijan launched Azexport, a centralized digital platform designed to promote domestically produced goods in international markets and reduce the barriers faced by local exporters, particularly SMEs. This study examines the contribution of digital trade and e-commerce to export growth, accessibility, and inclusion in Azerbaijan’s non-oil sector. It combines two complementary evaluation approaches: the six evaluation criteria of the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD/DAC) and a Social Accounting Matrix multiplier model used to estimate the platform’s short-term and indirect effects on export revenues and employment. The findings indicate that Azexport has played an important role in improving access to international markets, supporting export diversification, and expanding the participation of smaller producers and vulnerable groups in digital trade. As the first platform in the South Caucasus to provide both a virtual exhibition hall and a virtual conference space, Azexport has facilitated the international promotion of Azerbaijani products and strengthened the country’s digital trade infrastructure. The combined evaluation demonstrates that Azexport represents a distinctive government-led mechanism for promoting accessibility and inclusion through digital trade and e-commerce. The platform provides a relevant policy model for resource-dependent economies seeking to diversify exports, strengthen SME competitiveness, and support sustainable non-oil economic development.