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Yadulla Hasanli, Gunay Rahimli: Assessment of The Multiplicative Effects of The Mining and
Manufacturing Sectors nn Azerbaijan
By forming the optimal level of the area structure of each country's industry, it is
possible to speed up the solution of economic and social problems, such as ensuring
the efficient operation of the economy, increasing the economic efficiency of public
production, and improving the welfare of the population.
Improving the structure of Azerbaijan's industry, diversifying the country's economy
and exports, and developing the non-oil industry have been among the main priorities
of the government's economic policy since 2010, and a number of policy documents
(state programs and strategies) aimed at solving this task have been adopted and are
being implemented. In this regard, the assessment of the effects of the development
of these sectors on the country, the assessment of the effects of the development of
industrial sectors on other sectors, as well as the identification of problems in these
areas are relevant for the country's economy. In this article, the multiplier effects of
the increase in the demand for the production of the mining and manufacturing sectors,
which have the main share in the industry, were estimated using multiplier models
based on the input-output table and SAM.
LITERATURE REVIEW
Technical and technological advancements are the most significant and inevitable
factors in the development of civilization. Over the ages, advancements in technology
determined changes in the political, social, and cultural spheres that either supported
or inhibited it. When these elements came together, innovations were made that
revolutionized the way materials are produced (Benazzouz, 2018). From the
standpoint of technological development and technology, modern history separates
these simultaneously advancing phases into four groups, which are referred to as
technological revolutions. They allowed to the enormous acceleration of scientific
advancement and the application of its discoveries in industrial production
(Rymarczyk, J., 2020: 186).
The phrase "Fourth Industrial Revolution" was first made public by Schwab (2016)
following the German government's 2011 introduction of the "Industry 4.0" program
to encourage digitization of production. Since then, Industry 4.0 and the Fourth
Industrial Revolution have emerged as the primary keywords for structural change
globally. After Industry 4.0 was introduced, countries have realized that innovation,
technical advancement, and human capital are what are really causing the economy
and society to change. Nevertheless, different nations have not all been equally
prepared for the industrial revolution (Chung, 2021). The majority of nations are
currently taking economic steps to guarantee the shift to the fourth industrial
revolution, and Azerbaijan is undergoing this process, too.
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