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13. Fuad Selamzade: Measurement of the Efficiency of Azerbaijan Region Hotel
14. Organization: Window Analysis and Malmquist Index

Averages technical efficiency change (effch), technological change (techch), pure
efficiency change (pech), scale efficiency change (sech) and TFP change (tfpch) of
the hotel organizations of Azerbaijan regions is presented in Table 5. As it can be
seen in Table 5, TFP occurred in 2008-2009, 2010-2011, 2014-2015, 2015-2016 and
2016-2017. The highest tfpch score was 1,128 in 2016-2017 and the lowest tfpch
score was 0,882 in 2009-2010. It can be said that the tppch score decreased by 3% in
2017-2018 as 0,997. Although the overall average of the efficiency changes of all
regions a according to years did not take value above 1, effch decreased by 0,7%,
techch and pech by 0,4%, sech by 0,3% and tfpch by 1,1%.

When examining the tfpch of 2006-2007 and 2009-2010 periods, it is remarkable
that there is a high rate of loss. In this period, the positive development of the input-
output compositions of the regions, that is, the increase in technical efficiency did
not prevent the decrease in tfpch. In this and other years, the negative signals of the
technical change indicate that the input-output combinations in the production
processes of the companies have changed negatively. Hotel organizations in the
regions have moved their efficiency limits down. With the negative effect of
Techch, the efficient production limit could not be up risen. While the positive
contribution to the increase in technical efficiency change that has the positive
contribution to TFP comes from sech in 2006-2007 period and while positive
contribution comes from pech during the period 2009-2010 in which decrease in
pech contributed negatively, it should be emphasized that the decreases in sech
contributed negatively.

Table 5: Annual Means
year effch techch pech sech tfpch
2006-2007 1,113 0,882 0,995 1,119 0,982
2007-2008 0,981 0,993 1,001 0,980 0,974
2008-2009 0,863 1,185 0,954 0,904 1,023
2009-2010 1,044 0,844 1,048 0,997 0,882
2010-2011 1,095 0,973 1,010 1,085 1,066
2011-2012 0,860 1,039 0,945 0,910 0,894
2012-2013 0,977 0,931 0,986 0,991 0,910
2013-2014 0,936 0,979 0,974 0,962 0,916
2014-2015 1,062 0,976 1,034 1,027 1,036
2015-2016 1,028 1,065 0,974 1,055 1,095
2016-2017 1,079 1,046 1,088 0,991 1,128
2017-2018 0,923 1,081 0,957 0,964 0,997
mean 0,993 0,996 0,996 0,997 0,989
[Note that all Malmquist index averages are geometric means]

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