The assessment of azerbaijan tourism potencial

Tourism, as a service sector, has shown a rapid growth throughout the world. Today, tourism sector individualy builds up 30 % of the whole world service trade. Tourism sector is related to various large and small service sector, so it?s contribution to a country?s economy cannot be calculated fully. However, the theoretical and emprical works done in the national and international literature shows that, tourism has a pozitive effect on economic growth and economic development.The share and the importance of the tourism sector in a country?s economy increases day by day. As a result of this, the income increase in the sector exacerbate the competition between the tourism areas to get a bigger amount of this income. However, generally tourism sector increases the economy?s growth potential. In this framework, an analysis is done with the econometric time series used in the literature using the data of tourism income and GDP between 1996-2008 period. The hypothesis, tourism sector increases economic growth for the Azerbaijan economy is analyzed respectively unit root, cointegration and Zivot-Andrews and Gregory Hansen tests which determine structural breaks endogenously. The results shows that, after 2003, tourism sector effects Azerbaijan economy more effectively especially after 2006. This result is found by the methods which determine structural breaks endogenously.