ABSTRACT

The article assesses the impact of investments in the tourism sector on other sectors and the volume of production, as well as the level of employment in the country through the models developed on the basis of the “Input-output” tables for Azerbaijan’s, Turkey’s and Kazakhstan’s economy. In addition, “Equilibrium Prices” model which is dual of Leontief’s “Input-output model” has been prepared for all three countries, the dependencies between the value added in the tourism sector and the level of prices have been examined, and the effect of increasing value added in the tourism sector on other areas and the level of inflation has been determined.

The analysis of the simulation results carried out by models allows to determine the effectiveness of the investments in the tourism sector in comparison with other sectors for each of three countries.

Keywords: Input-Output model, Equilibrium Prices Model, employment, direct and indirect effects, investment.

JEL Classification: C15, C67, O13