Abstract.Day2.Zeynalov
Lifecycle Deficit and Demographic Challenges in Resource-Rich Economies: the Case of Azerbaijan
Ayaz Zeynalov and Ruslan Aliyev
This paper explores the dynamics of intergenerational transfers and life-cycle deficits in resource-rich economies, employing the National Transfer Accounts (NTA) methodology. Such economies face significant challenges in achieving equal distribution of limited natural resource revenues across generations, particularly in the context of the resource curse and ongoing demographic transformations. Focusing on Azerbaijan, a small, oil-exporting developing economy, we evaluate forward-looking policies to mitigate the adverse effects of resource depletion, population aging, and declining fertility rates. to ensure long-term economic stability, we emphasize the potential for improvement through (i) enhancing labor productivity, (ii) promoting consumption smoothing across generations, (iii) extending working ages for older generations, and (iv) reducing dependence on asset-based income.