Page 71 - Azerbaijan State University of Economics

Yadulla Hasanli, Sudabe Salihova: A Comparative Analysis of Tourism Sectors of Azerbaijan,
Turkey and Kazakhstan Through İnput-Output Tables
Analysis

1,035 million in 2012 to 1,087 million in 2013 with an increase of 52 million, in

2015, it reached 1,186 million people with an increase of 99 million. International
tourism revenues reached US $ 1.260 billion in 2015, while it was US $ 1.243
billion in 2012. In 2016, due to increasing terrorist activities, tourism income
decreased to 22 billion 107 million 440 thousand dollars and average expenditure
per person decreased to 705 dollars.

The purpose of this study is to find answers to the following questions based on the
table input-output of Azerbaijan, Turkey and Kazakhstan.

 Effect of the investments on total output level and employment level in
economic sectors (Investigation of the effect of 1 million USD investment in
tourism sector on total output level and employment level in different sectors
of tourism and economy in the country and comparative analysis).

 Interrelationship between price level and value added (how the 1% increase in
value added in the tourism sector will change the price level in the sector itself,
in different sectors of the economy and in the country).

 Effect of the increase of the final product on the total output level (The
comparative analysis of the effect of 1% increase in the final product on the
total output level in the sector itself and in different sectors of the economy).

2. INPUT-OUTPUT ANALYSIS

The inter-industry flow of goods and services is multifaceted and complex. To be
able to plan the national economy, it is necessary to know the structure of the
economy and the relations between sectors. Input-Output Analysis is a model that
analyzes the inter-sectoral relations consistently with the help of the necessary
mathematical and statistical analyzes. This basic information from which an input–
output model is developed is contained in an inter industry transactions table. The
rows of such a table describe the distribution of a producer’s output throughout the
economy. "Input-output" tables are considered to be a mirror of the economy.

Input-output analysis is a technique used to investigate relationships between
industries or sectors in an international, national or regional economy. This
technique was developed by Wassillie Leontief. Input-output analysis is a method
used to calculate the required output level of industries in an economy in order to
fully meet the demand for the products produced. That is, the output of an industry
can be an input of one or more industries or even itself. In short, the output of an
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