ANALYSIS BETWEEN THE TOURISM SECTOR AND ECONOMIC GROWTH IN AZERBAIJAN.

Recently, tourism sector is in the spotlight of Azerbaijan amidst the non-oil sectors. Azerbaijan is in the wake of becoming tourism country and it seems that tourism has rapidly developed especially after 2000 years; the country tries to achieve a competitive advantage in international tourism sector. The key purpose of this research is to analyze the relation between the economic growth and tourism incomes in Azerbaijan based on the data covering 1990-2014 period and within the and cointegration tests. The stationarity of model’s variables has been provided with the first difference. According to the results of test made, availability of unilateral relation has been determined between tourism incomes and GDP. This result indicates that tourism is positively affected by the economic growth. According to the findings, it was defined that 1% increase in GDP has resulted almost with 4.2 % increase of tourism incomes in researched period.