DEVELOPMENT OF A “MACRO-LEVEL PRODUCTION ORGANIZATION” MODEL SEPARATELY FOR SUB-SECTORS

Abstract

The light industry (textiles, apparel, leather, and footwear) plays a strategic role in diversifying exports and increasing employment within the non-oil economy. The sector is laborintensive, energy- and water-demanding, and characterized by fast fashion and short product life cycles. Enhancing productivity requires capital deepening, technological modernization, and digitalization. In sub-sectors C13, C14 and C15, long-term growth mainly depends on efficient labor utilization, while short-term dynamics are driven by capital. Shocks such as COVID-19 and currency devaluation cause temporary fluctuations, but ECM indicators show that the sectors quickly return to equilibrium. Efficient labor organization and capital management are key drivers of industrial development in Azerbaijan