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Yadulla Hasanli, Gunay Rahimli: Assessment of The Multiplicative Effects of The Mining and
                                                                                Manufacturing Sectors nn Azerbaijan

                    However,  the  effects  from  the  associated  Dutch  disease  negatively  impact  real
                    production and value added in the agriculture and industry. (Fatah, 2008) uses a Social
                    Accounting Matrix (SAM) to analyze the impact of the coal mining industry on the
                    economy and to do simulations to find alternative policies on the coal industry that
                    are suitable for economic improvement and environmental sustainability.

                    For Azerbaijan economy, the impact of various sectors on the economy was evaluated
                    based  on  the  multiplier  based  on  the  expenditure-output  model  and  the  Social
                    Accounts  matrix  (Sadik-Zada  et  al.,  2021;  Hasanli  et  al.,  2019;  Rahimli  and
                    Mammadova,  2022).  (Hasanli  and  Rahimli,  2023)  estimates  and  compares  the
                    country-wide effect of investments in each sector using both models. In this article,
                    we will evaluate the additional demand created by the increase in demand for the
                    products of the mining and manufacturing sectors in these sectors, in other sectors and
                    in the country as a whole. Also, the analysis of these demand volumes helps to reveal
                    the problems in these sectors.

                    METHODOLOGY

                    The relationships between the various economic sectors are displayed in the input-output
                    table. Thus, each sector uses production elements and intermediate consumption products
                    from other sectors to generate its own output, which it then sells to consumers as a final
                    good and to other sectors as an intermediate product. The input-output table (Table 1)'s
                    rows and columns, respectively, represent this process (Greton, 2013).

                    Table 1: Input output table
                              Output            Intermediate demand           Final demand  Output
                     Input   Sector 1     Sector 1     Sector 2    Sector 3        Y1          X1
                                                                     x11
                                                          x11
                       Intermediate   demand   Sector 2   x11   x11   x11          Y2          X2
                                             x11
                                                          x11
                                             x11
                                                                                               X3
                                                                                   Y3
                                                                     x11
                             Sector 3
                     Value Added             V1           V2          V3
                     Input                   X1           X2          X3

                    The entire output of each sector can be seen by examining the rows of the input-output
                    table, which sums the intermediate and final consumption. Then input-output table's
                    main equation can be written as follows (Hasanli, 2011):

                                                X=AX+Y                     (1)



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