Assessing the Sectoral and Macroeconomic Impacts of Capital Investment on Education in Azerbaijan

Abstract

In this article has been analyzed the current state of education in Azerbaijan, and the role of education in poverty reduction and the formation of the labor market has been researched. Also, the assessment of sectoral and macroeconomic impacts of capital investments in the formation of the education system in accordance with the requirements of the labor market was considered.The purpose of the study is to evaluate the volume and designation of investment in education, including macroeconomic impacts on its economic activities as a whole, in terms of investment programs.The research database consists of official state documents related to the volume of capital investments and the inter-sectoral balance of production and distribution of products and services developed by the State Statistical Committee of the Republic of Azerbaijan.The assessments were made using the Social Accounts Matrix and its general multiplier model, based on the intersectoral balance of production and distribution of products and services.As a result, the economic and macroeconomic effects of capital investments in education were evaluated by simulations.

Keywords

• capital investments
• investment analysis
• investment on education
• labor market
• sectoral and macroeconomic impacts
• social accounting matrix
• multiplier effects