Page 47 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 1, 2020, pp. 31-50
examining the results of the policies implemented in the tourism sector in order to
measure the tourist performance of the regions, to evaluate the current situation of
the hotel and hotel type organizations and to take future decisions. The fact that no
similar studies have been encountered in Azerbaijan so far demonstrates the
importance of the study.
In this study, the efficiency changes of hotel and hotel type accommodation
organizations of 9 regions of Republic or Azerbaijan were investigated by using
Window Analysis and Malmquist Total Factor Productivity Index (TFP) methods.
Efficiency change measurements performed by Window Analysis method were
made by using output oriented constant and variable return models. As a result of the
study, the following findings were obtained: According to the results of constant and
variable scale window analysis, Nakhchivan A.R. was the only region efficient in all
the years of 2012 - 2018. The Baku region has been efficient in 2006-2009, 2011-
2013 and 2018. In addition, according to the results of both analyses, no region was
efficient in 2010. The region with the lowest efficiency score was the Aran region.
According to the results of TFP, it was observed that there were no significant losses in
the average TFP of the other regions except the Aran region, but there was remarkable
development in the productivity increases during the application period of the analysis,
The highest increase in TFP occurred in 2016-2017 with 12,8%. Although the average
technical efficiency changes of the regions obtained the highest values, it was observed
a decrease in the scale efficiency change. In 2011-2012 periods, in which technical
efficiency change values gave negative signals, the decrease in TFP reached 10,6%. The
largest loss (11,8%) in the TFP was experienced during the period 2009–2010. In this
period, it was seen decreases only in technical change and pure efficiency change
values, and increases in technical efficiency change and pure technical efficiency
changes were not sufficient to eliminate the losses. The highest decrease in pure
efficiency was 5,5% during the period of 2011-2012 and the highest decrease in scale
efficiency was 9,6% during the period of 2008-2009. Finally, when the averages of all
periods are analyzed, it was observed a 1,1% decline in TFP. It can be said that this
decline was caused by the decrease in technical efficiency and technical change.
Increasing the technical efficiency of the tourism sector, the positive use of technology,
and providing the full administrative efficiency will not only increase the economic
efficiency and productivity in the regions, but will also bring along high competitive
power. In the strategic planning for socio-economic development of the regions, it is
seen that there is a need for policies to improve tourism and increase the efficiency of
hotel organizations.
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