Page 74 - Azerbaijan State University of Economics

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

Here, the ∆ shows -price level, ℎ − − , B is the transpose
of the total expense matrix.

The effectiveness of the total output amount on the employment can be determined
by the following equation:
∆ = ∆ or ∆ = ∆ (4)

Here, ΔY- indicates upcoming changes in employment (ΔL) as a result of the change
in final product, t- is the direct labor density coefficient, in other words, the labor
force needed to output a unit in each sector (person-hour, person-day, person-year).

4. EMİRİCAL ESTİMATİON IN THE CASE OF AZERBAİJAN, TURKEY
AND KAZAKHSTAN

In this study, according to the report published by the statistical institutions the
“İnput-output” simulations models for the 15 sectors of Azerbaijan economy (2006),
59 sectors of Turkey economy (TÜİK, 2002) and 29 sectors of Kazakhstan economy
(ASRK, 2007) based on the “İnput-output” tables were carried out.
Table 1: The results of the simulation model of Azerbaijan, Turkey and
Kazakhstan "İnput-output" (effect of $ 1 million increase of final product in
tourism sector on output amount and employment, 1 $ = 1.7 AZN, 1 $ = 5.30
TL, 1 $ = 368.3 KZT).

Effect on output quantity Effect on employment
Person/year
Multiplicator In the direct Across the
tourism sector country
Countries/Sectors Tourism Across the
industry country
Azerbaijan 1,3 1,81 309 391
Turkey 1,3 1,99 88 151
Kazakhstan 1,4 1,98 143 248

As can be seen from Table 1, the effect of the increase of the $ 1 million of the final
product (Y) in the tourism sector in each of the three countries varies according to
the country. The reason for the increase in the final product more multiplier effect
(1,99) in the tourism sector in Turkey, in Azerbaijan (1,81) in comparison with
these countries (Kazakhstan and Turkey), the indirect relationship with other sectors
of the economy of the tourism sector can be interpreted as being weak.

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