Analysis of Azerbaijan's foreign investments to transport sector

Abstract

This article analyzes the impact of foreign investments on Azerbaijan's transport sector, highlighting its role as a key transit hub between Europe and Asia. Leveraging its strategic location and integration into international trade routes, such as the Trans-Caspian International Transport Route (TITR), Azerbaijan has attracted significant foreign direct investments (FDI) in rail, road, maritime, and air transport. These investments have driven economic growth, enhanced trade efficiency, and supported diversification. Using descriptive statistics and correlation analyses, the study examines the relationship between total investments and sectoral allocations. The findings reveal the transformative role of FDI in modernizing infrastructure and reducing trade costs while addressing challenges like regulatory frameworks and transparency. The article concludes with a forward-looking perspective on maximizing the potential of foreign investments to strengthen Azerbaijan's position in global trade.