Page 43 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 2, 2023, pp. 28-46
However, according to the SAM-based model, this demand is 93.6 thousand manats.
This shows that more than half of the demand for intermediate products of the ‘Mining
industry’ by the ‘Production of non-metallic products and base metals’ sector and by
the sectors from which it receives intermediate products is covered by imported
products. If we look at the sector of ‘Agriculture, forestry and fishing’, we can see
that the demand for this sector due to production relations is 5 thousand manats, and
the demand for the SAM-based model is 42.8 thousand manats. The reason for this
increase is that the increase in the income of the population through the increase of
the value added as a result of the increase in the production volume in all sectors to
meet the demand for the ‘Production of non-metallic products and base metals’ sector
increases the demand for the products of this sector. We can observe the same trend
in the field of ‘Production of food, drinks and tobacco’, as well as in most service
sectors. This means that the increase in population income is primarily spent on
meeting the demand for the products of these areas.
Table 6 shows the multiplicative effects of an increase in demand of 1 million manats
for the products of ‘Production of machinery, equipment, and furniture’. Here, too,
we observe the trend in other groups of the manufacturing industry. Thus, the
additional demand caused by the 1 million investment due to production relations is
2.08 million manats, while according to the SAM-based model, this figure is much
less - 1.3 million manats. The increase in this sector itself is 1.3 million manats due to
production relations, and 1.1 million manats according to the SAM-based model. The
2nd sector where the highest growth due to iroduction relations is observed is the field
of ‘Professional and technical activities’. Although the demand for the products of
this field is 215.5 thousand manats due to production relations, as a result of the
payment of most of this demand by import, the SAM-based model shows a demand
of only 42.3 thousand manats. The same trend is observed in ‘Production of non-
metallic products and base metals’, which is the 3rd sector with the highest growth.
Although the additional demand in this area according to the io model is 193.7
thousand manats, the SAM-based model shows an increase in demand of only 48.4
thousand manats. In the areas of ‘Agriculture, forestry and fishing’, ‘Production of
food, drinks and tobacco’, ‘Education’, ‘Healthcare’, ‘Social Services’, ‘Rest,
entertainment, art services’, the result of the SAM-based model is higher than that of
the io model, which is due to the demand for the products of these areas due to the
increase in value added.
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