Page 76 - Azerbaijan State University of Economics

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

Kazakhstan. This result can be interpreted as the dependence of the Azerbaijan
economy on the oil sector. In addition, the increase in the value added in the oil
sector by 1% is due to the fact that the price increase in its sector is less than in
Kazakhstan, because oil prices in Azerbaijan are under state control.
Table 4. The results of the "input-output" simulation of Azerbaijan, Turkey
and Kazakhstan (Effect of 1% increase in final product (Y) on output quantity
in tourism sector).

Multiplicator The effect of total output Effect on
amount,% the total
Countries/ In tourism Across the In Direct Across the final product
Sectors industry country tourism industry country quantity,%
Azerbaijan 1.358 1.807 0.00008 0.0011 0.001
Turkey 1.185 1.753 0.0011 0.0335 0.039
Kazakhstan 1.510 2.120 0.0017 0.048 0.042

According to the simulation results obtained, the total amount of 1% increase of the
final product in the tourism industry affected mostly in Turkey (0.039%). The reason
as mentioned that the tourism sector has weaker indirect relations with other sectors
of the economy in Azerbaijan compared to Turkey and Kazakhstan. If we evaluate
the total output rate in the tourism sector based on the total output ratio across the
country, we could see the 7,3% increase in Azerbaijan, 3,3% in Turkey, 3,5% in
Kazakhstan. This result shows that what we said above is correct.

5. CONSLUSİON

It is seen that the tourism sector started to increase its activity within the national
economies starting from 2000 in the conditions of our world. The impact of the
tourism sector on the country's economies is increasing in parallel with the
acceleration of globalization and people's view of tourism as an indispensable part of
welfare and living standards. An increase in the final demand of the tourism sector
leads to an increase in the production of both the sector and other related sectors.

As a result of the analysis, it was found that the same amount of investment in
tourism sector in all three countries would create more work place (person-year) in
Azerbaijan in direct tourism sector. This is due to the low labor productivity and
costs in Azerbaijan compared to the other two countries. 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. The increase in the value added rate in tourism sector by 1% affects

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