Page 75 - 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
As a result of the same amount investment (1 000 000 US dollar, in Azerbaijan 1
700 000 AZN, in Turkey 3 500 000 TL, in Kazakhstan 368 281 000 KZT ) in the
tourism sector in all three countries, the consequences have found that direct tourism
sector will create the 309 workplaces in Azerbaijan, in Turkey and Kazakhstan
respectively 88 and 143 workplaces (person-years).
Appropriate values obtained for Azerbaijan are higher than in comparison with
Turkey and Kazakhstan, and this stems from being low labor productivity and costs
in Azerbaijan compared to these two countries. As mentioned above the number of
business places to be more with the account of interest in Turkey is due to the
tourism sector and its products are used less than in Kazakhstan and Azerbaijan in
other sectors of the economy.

Table 2: The results of the “Equilibrium Prices” simulation model of
Azerbaijan, Turkey and Kazakhstan (The effect of 1% increase in the value
added of tourism sector on the price level of other sectors of the economy).

Countries/Sectors Effect on price level,%
In tourism industry Across the country
Azerbaijan 1,293 0,063
Turkey 1,29 0,052

Kazakhstan 1,404 0,134

As can be seen from Table 2, the 1% increase in the value added in the tourism
sector affects more the price level (inflation) both in the sector and in the country.

Considering that Azerbaijan and Kazakhstan are petroleum countries, if the value
added in the petroleum sector increases by 1%, let's look at the simulation results in
order to determine the effect of price changes on the price level in the country
through the “Equilibrium Prices” model.
Table 3: The results of the “Equilibrium Prices” simulation model of Azerbaijan,
Kazakhstan and Iran

Countries/Sectors Effect on price level,%

Direct to oil industry Across the country
Azerbaijan 1,0064 0,4100
Kazakhstan 1,170 0,272

As can be seen from Table 3, the increase in the value added rate in the oil sector by
1% causes the price level (inflation) in Azerbaijan to be more affected than in
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