The impact of digital infrastructure development on the competitiveness of the tourism sector in Azerbaijan

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Summary

The aim of this study is to evaluate the relationship between the development of digital infrastructure and the competitiveness of the tourism sector in Azerbaijan from both theoretical and empirical perspectives. Within the framework of the study, the concept of digital infrastructure, the mechanisms of competitiveness formation in the tourism sector, and the institutional characteristics of digital transformation policies in Azerbaijan are examined.

In the empirical stage, a multivariate regression model was estimated using the Ordinary Least Squares (OLS) method based on annual data for the period 2010–2024. Tourist arrivals (TA) were used as the dependent variable, while the explanatory variables included the share of internet users (INT), GDP per capita (GDP), tourism revenues (TR), the exchange rate (ER), and a dummy variable representing the pandemic period (PD).

The estimation results indicate that GDP per capita and tourism revenues have a statistically significant relationship with tourist arrivals (p < 0> 0.05). Overall, the findings suggest that tourism dynamics are primarily explained by macroeconomic factors, while the impact of digital infrastructure is not directly confirmed within the selected model specification and is more likely to operate through indirect channels.

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