Page 73 - Azerbaijan State University of Economics

Yadulla Hasanli, Sudabe Salihova: A Comparative Analysis of Tourism Sectors of Azerbaijan,
Turkey and Kazakhstan Through İnput-Output Tables
Analysis
the two countries could contribute to economic cooperation and trade in the benefit

of the two countries if converted into cost advantages for both Turkey and
Kazakhstan (2014).

Many studies have been done with the input-output analysis approach for different
sectors of the Turkish economy. Çakır and Bostan (2000), Dilber (2007), Sarıışık
and others (2011), they investigated the effects of tourism on the Turkish economy.

3. THEORETHICAL AND METHODOLOGICAL BASICS OF "INPUT-
OUTPUT" MODEL

The Sectorial Input-Output table is composed of three parts:

I part shows the mutual interconnections of sectors (rows indicates the intermediate
goods, and the columns shows quantities of goods and services received from other
industry sectors to perform their own production about to be intermediate
consumption expenditures) (Calculation of GDP by production method);

II part shows the components of the final product (consumption, investment, public
expenditures, exports, imports) (Calculation of GDP by expenditure method);

III part reflects the components of Value Added (wages, profit, depreciation,
interest etc.), in other words, the calculation of GDP by income (Hasanli, 2011, s.
17)

The input-output model of W. Leontief (Leontief, 1979) is as follows:
−1
= AX + or = (E − A) (1)
The following equation is used to determine the effect of any i-sector of the
economy on the total output amount in the final product itself(∆ =
(0, … 0, ∆y ,0,...,0)) and in other sectors (∆ = ∆x , … ∆x i−1 , ∆x , ∆x i+1 ,...,∆x ):
n
i
i
i
∆ = B∆
(2)
The following equation is used to determine the impact of the change in the value-

added of any i-sector of the economy on the price level in itself (∆ =
(0, … 0, ∆ ,0,...,0)) and in other sectors (∆P = ∆p , … ∆p i−1 , ∆p , ∆p i+1 , … , ∆p ):
n
i
i

∆ = ∆ (3)

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