Clustering and employment opportunities in the development of sericulture and cocoon production in the northwestern region of Azerbaijan

The article examines the development dynamics of sericulture and cocoon production sectors in the northwestern region of Azerbaijan (Sheki-Zagatala economic-geographical region) during the period 2018–2023, the application of a cluster-based production model, and the impact of these sectors on employment. The aim of the study is to evaluate the effectiveness of the cluster approach to enhance the economic potential of sericulture, one of the region’s traditional economic activities, and to investigate changes in the labor market within this field. The research employs both qualitative and quantitative analyses based on official statistical data, regional development programs, and reports from local executive authorities, identifying the influence of the silk industry on the regional labor market. A SWOT analysis was conducted to assess the development opportunities and existing challenges of these sectors. Considering the sericulture potential of the region, clusters and subclusters were identified based on production, labor market, and other functional characteristics. For the first time, a monomorphic logistic model was developed and applied to organize clustering in sericulture and cocoon production, demonstrating its effectiveness as a tool for optimizing the regional production chain.