Page 70 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 1, 2019, pp. 70-82

A Comparative Analysis of Tourism Sectors of Azerbaijan, Turkey
and Kazakhstan Through İnput-Output Tables

2
1
Yadulla Hasanli , Sudabe Salihova

1 Azerbaijan State Economic University ,Baku, Azerbaijan, and Azerbaijan, İnstitute of
Control Systems of ANAS, E-mail: [email protected], [email protected]
2 Azerbaijan State Economic University ,Baku, Azerbaijan, E-mail:
[email protected]

Received 22 February 2019; accepted 14 June 2019; published online 05 July 2019

ABSTRACT

The article assesses the impact of investments in the tourism sector on other sectors
and the volume of production, as well as the level of employment in the country
through the models developed on the basis of the “Input-output” tables for
Azerbaijan’s, Turkey’s and Kazakhstan’s economy. In addition, “Equilibrium
Prices” model which is dual of Leontief’s “Input-output model” has been prepared
for all three countries, the dependencies between the value added in the tourism
sector and the level of prices have been examined, and the effect of increasing value
added in the tourism sector on other areas and the level of inflation has been
determined.

The analysis of the simulation results carried out by models allows to determine the
effectiveness of the investments in the tourism sector in comparison with other
sectors for each of three countries.

Keywords: Input-Output model, Equilibrium Prices Model, employment, direct and
indirect effects, investment.

JEL Classification: C15, C67, O13

1. INTRODUCTION
Nowadays, the tourism sector, which offers a multifaceted service, has become a
major economic engine at a global level for the solution of the economic problems
faced by national economies since the 20th century and for overcoming the
bottlenecks appeared. This deterioration had important impacts on various countries,
and in particular in developing countries, where the sector has become an
increasingly relevant source of development. Today, the tourism sector alone
accounts for around 30% of the world trade in services. According to the World
Tourism Organization (WTO), the number of international tourists increased from
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