Estimation of Tourism Demand and Supply Functions for Azerbaijan: 2SLS Approach

In this paper, there was investigated tourism demand and supply functions in the case of Azerbaijan. The authors have applied the 2SLS method to identify these functions. The authors came to the conclusion that the demand function of tourist trips to Azerbaijan varies depending on the level of incom...

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Published in:WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 2021-10, Vol.18, p.1280-1290
Main Authors: Mayis, Gulaliyev G., Shafa, Guliyeva T., Leyla, Hajiyeva A., Hijran, Muradova R., I. Ulker, Mammadova
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description In this paper, there was investigated tourism demand and supply functions in the case of Azerbaijan. The authors have applied the 2SLS method to identify these functions. The authors came to the conclusion that the demand function of tourist trips to Azerbaijan varies depending on the level of income of tourists’ origin countries and the price level in Azerbaijan. Unfortunately, the COVID-19 pandemic impacts not only the restriction policy of origin countries, as well as income in these countries. By decreasing the income levels of the population in these countries will be decreased the number of tourists to Azerbaijan.
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