Page 72 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 1, 2019, pp. 70-82

industry depends on the required input of other industries and the necessary inputs of
an industry partially affect the output levels of other industries. (Erdoğan, 2004, s.
327).

Due to this mutual relationship between industries, a balance will be formed
between total output and total input demands in the economy. One of the objectives
of the input-output model is to determine the output level appropriate to the required
inputs of all industries.

The United Nations (UN) regularly develops the methodology for the creation of
“Input-output” tables suitable for today's market and proposes that the amendments
to be made in the Member States should also be taken into account. (Rukavodtva po
sostavleniyu tabliç zatrat-vıpuska i ix analizi, 2000, s. 304) .The end of the past
century "İnput-output" tables to be created on the basis of the rules of our country's
social-economic system more comprehensive "Social Accounting matrices" (SAM)
has been prepared. SAM is part of the System of National Accounts (SNA) and is
created by state statistical institutions in a number of countries. The General
Equilibrium Model (GEM), established on the basis of SAM, has an excellent
structure. At present, GEM models are used in more than 100 countries around the
world to analyze and anticipate the country's socio-economic indicators (including
the estimate of different tax revenues of the state budget). The creation and
implementation of GEM is based on Leontief’s "Input-Output" model.
A number of studies have been conducted in Azerbaijan based on the "Input-output"
tables. After the declaration of the independence of the Republic of Azerbaijan, the
first studies on the economy of Azerbaijan were carried out by Hasanli (2005),
Hasanli and Suleymanov (2007), Imanov and others ( 2006), with the help of the
"Input-output" tables. With the input and output model the number of jobs increased
in Azerbaijan has been examined Abbasov and others (Abbasov A.M., 2007). In
another study, comparative analyzes were made with the "Equilibrium Prices" model
approach based on sectoral balance tables for the production and distribution of
goods and services in the Azerbaijani economy in 2001 and 2006 (Hasanli Y.,
2010). Hasanli and Salihova (2017) examined the tourism sector's relationship with
other sectors of the economy.

Similar studies have also been made for the Republic of Kazakhstan. Thus, Hasanli
and others have made a comparative analysis with the input-output model of the
economies of Azerbaijan and Kazakhstan ( 2011). Then Bayzakov and others
analyzed the input-output table for the years 2000-2011 (2014). Özdil and
Turdaliyeva made a comparative analysis of the economies of Turkey and
Kazakhstan with the input-output analysis approach and defined the sectors where
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