Американский Научный Журнал CURRENT SITUATION ANALYSİS AND ECONOMETRİC ASSESSMENT OF SOCIAL INFRASTRUCTURES IN AZERBAIJAN

Abstract. The article describes the essence of infrastructures and their contents. As the main part of infrastructures social infrastructures and their classifications are dealt with in the article. The current case and development aspects of social infrastructures, including education, culture, housing and utilities, health and tourism infrastructers are studied in the paper. Investments in social infrastructures and their effects on infrastructures` progress are also explored in the article. While at the same time the measures taken in the direction of social protection of the population are mentioned in Azerbaijan. The productive factors that affect the overall release of social infrastructure are estimated econometrically. Скачать в формате PDF
American Scientific Journal № (2 8) / 2019 55

ЭКОНОМИКА, ЭКОНОМЕТР ИКА И ФИНАНСЫ

CURRENT SITUATION AN ALYSİS AND ECONOMETR İC ASSESSMENT OF SOC IAL
INFRASTRUCTURES IN A ZERBAIJAN

Hasan Abdulali Mammadov
Doctor of Philosophy in Economics Sciences,Associate Professor
AZ7012.The Republic of Azerbaijan, Nakhchivan Autonomous Republic, s. Nak hchivan
Nakhchivan State University

Abstract . The article describes the essence of infrastructures and their contents. As the main part of
infrastructures social infrastru ctures and their classifications are dealt with in the article. The current case and
development aspects of social infrastructures, including education, culture, housing and utilities, health and
tourism infrastructers are studied in the paper.
Investments in social infrastructures and their effects on infrastructures` progress are also explored in the
article.
While at the same time the measures taken in the direction of social protection of the population are mentioned
in Azerbaijan.
The productive facto rs that affect the overall release of social infrastructure are estimated econometrically.
Key words: infrastructure, social infras tructure, econometric assessment, housing and utility infrastructure,
health infrastructure, tourism infrastructure

1. Intr oduction
The term "Infrastructure" was firstly used by an
English economist A. Marshall (1842 -1924) to refer to
the objects in the early of twentieth century (1910).
Later, in 1941, the term "infrastructure" was developed
in the United States to classifyy the milit ary forces and
units providing the vital functioning of the armed
forces. In the United States of America, military
infrastructure meant a complex of military forces
(military warehouses, aerodromes, radiolocation posts,
landfills, etc.) that woul d ensure the functioning of the
military. It is clear that military infrastructure is a unit
of maintenance that carries out military operations
during war and ensures proper defense of the state in a
peaceful environment. This idea was then widely
spread throughou t all other areas, and the
"infrastructure" was entered to the lexis as an economic
terminology(11). The concept of "infrastructure" was
originated from Latin. It expresses the combination of
words “infra -lower, and structura - location”. This
conc ept descr ibes the complexes that serve other areas.
Thus, the expression "serving in another area" in its
content has special importance. For example, in the
40s, the concept of infrastructure in the West was
understood as the aggregate of areas that serve d the
mat erial production. Although the term "infrastructure"
was used to describe buildings, warehouses and
structures of the military -industrial complex for the
first time, thereafter was started to be used by the
world`s population as an economic catego ry that s erves
the main area in all sectors of the economy.
Thereby, infrastructure means the internal
structure, the basis of economic system which is
derived from its functions in essence.
Despite infrastructures have different types, they
all serve the integrity of national economy and
development of its field structures in essence. Since the
areas of infrastructure are science, labor and capital,
their foundation and development in our cou ntry are
still covered by government care. Therefore, while the
government regulation of the economy is being
implemented in our country, the development of these
areas is taken into account regularly. In our view,
infrastructures in the market economy sho uld include
the aggregate of the various market entities which
provide normal functioning of interconnected areas
with each other - production, social, market,
international, institutional and eco -systems, as well as
Armed Forces.
2. Social infrastructure classification
Ensuring the health of people, restoring work
for ces capacity, establishing the education system at the
level of modern requirements in society, improving
people`s spiritual well -being and cultural life is linked
to the current case of the s ocial sphere. The progress of
social sphere is directly related to the development of
the social infrastructures that serves it.
Social infrastructures classification includes
education, culture, art, healthcare, housing and
communal services, domestic ser vices, tourism
services, passenger transport services,
telecommu nication services and so on. After gaining
independence these fields have been transformed from
the administrative emirate economic system to the
market economy system as other infrastructural areas
in our country.
Social infrastructure classification incl udes
education, culture, art, healthcare, housing and
communal services, domestic services, tourism
services, passenger transport services,
telecommunication services and so on. referenced. In
our country, these fields have been transformed from
the admini strative emirate economic system to the
market economy system after gaining independence as
other infrastructural areas. Obviously, the stagnation in
the social sphere during the early years o f independence
also contributed to the development of social
inf rastructure(9).
3. Social infrastructure development trends

56 American Scientific Journal № ( 28) / 2019
As the country is at political war, many objects of
science, education, culture, arts and health remain
under enemy occupation, the breakdown of former
socio -economic ties have caused serious viol ations of
the material and moral well -being of people.
Later political stability in the country,
establishment of international political and economic
relations with world countries have creat ed a serious
transformation in the existing economic system.
İnc omes from the sale of oil have led to the formation
of the state budget, development of entrepreneurship
and the organized system of free market economy. The
inflow of foreign and domestic inv estments, budget
allocations for the development of economic str uctures,
and loans for entrepreneurship have had a significant
impact on infrastructure growing along with other areas
in the country. Our country has left the recession in the
socio -economic sphere behind, the cycle of sustainable
economic development has already begun and
continues.
Social infrastructures plays an important role in
ensuring sustainable economic development in the
country. Thus, social infrastructures are integrated into
the s ocial spheres which they belong to, and the
progress in social s pheres cause to enhance living
standards of the people, shape their cultural lifestyles,
promote them have better life, reproduce scientific
potential, create spiritual growth, as a result, it increases
labor productivity.
At the expense of investments in the development
of social infrastructures their current progressional
trends show that in recent years, sustainable
development has also been established in the social
sphere, which is an inte gral part of socio -economic
growth.
Table 1
INVESTMENTS ON SOCI AL INFRASTRUCTURES I N THE REPUBLIC OF AZ ERBAIJAN DURING
2010 -2016. (MLN MANATS)
N Indicators names: 2010 2011 2012 2013 2014 2015 2016
1
Investments directed
to fixed capital on all
sectors of economy
TOTAL:
9905,7
100%
12779,0
100%
15407,3
100%
17850,8
100%
17618,6
100%
15957,0
100%
15772,8
100%
2.
Including,
investments in social
infrastructure
TOTAL:
1258,0
12,7%
2402,6
18,8%
2989,1
19,4%
3248,7
18,2%
3823,2
21,7%
2010,6
12,6%
773,2
4,9%
- İn educational
infrastructures
138,7
1,4%
294,0
2,3%
801,2
5,2 %
767,5
4,3%
511,0
2,9%
303,2
1,9%
205,2
1,3%
-
Vocational, scientific
and technical
activities
infrastructures
9,9
0,1%
12,8
0,1%
30,8
0,2%
53,6
0,3%
35,2
0,2%
16,0
0,1%
15,8
0,1%
- Art, Culture 336,8
3,4%
728,4
5,7%
693,3
4,5%
624,7
3,5%
1638,5
9,3%
36 7,0
2,3%
63,2
0,4%
- Health care services 168,4
1,7%
306,7
2,4%
262,0
1,7%
357,0
2,0%
317,1
1,8%
239,3
1,5%
126,2
0,8%
- Social services 386,3
3,9%
754,0
5,9%
1063,1
6,9%
1374,5
7,7%
1198,1
6,8%
638,3
4,0%
283,9
1,8%
- Tourism
Infrastructure
217,9
2,2%
306,7
2,4%
138,7
0,9%
71,4
0,4%
123,3
0,7%
446,8
2,8%
78,9
0,5%
3.
Investments in other
sectors of the
economy TOTAL:
8647,7
87,3%
10376,4
81,2%
12418,2
80,6%
14602,1
81,8%
13795,4
78,3%
13946,4
78,3%
14999,6
95,1%
Note: The table was prepared by the aut hor with the data of www.azstat.org .

As shown in the table data social infrastructure
investments are the second largest after production
infrastructure in investments in fixed assets during
2010 -2016. Thereby, durin g this period, education,
culture, arts, health, tourism and social services were
regularly invested and investments in these sectors
accounted for 15.5% averagely of total investments for
the development of all sectors of the economy in 2010 -
2016. As a re sult, social sphere`s sustainable
development was achieved, the health of the population
was ensured, housing and utilities services were
improved.
4. Housing and communal services
improvement
At the expense of funds invested in the
construction sector in the country during 2010 -2015,
the number of residential buildings and apartments has
increase d significantly, as well as the total housing and
living space of the housing resources. Each year,
including in 2010, the number of residential buildings
has regu larly increased. According to statistics, 94,966
single -family homes were built and put into operation
in 2010 -2015. As a result, the number of residential
buildings in 2015 was 1,341.7 thousand, which is
85,300 more comparing with 2010. The increase was

American Scientific Journal № (2 8) / 2019 57

mainly due to the construction of non -state -owned
residential buildings.
Table 2
SITUATION OF HOUSING AND COMMUNAL SERVIC ES IN AZERBAIJAN FOR 2010 -2015 YEARS
N The name of indicators: 2010 2011 2012 2013 2014 2015
1. Residential buildings (thousand
units) 1256,4 1269,9 1286,3 1303,0 1322,2 1341,7
2. _”State owned
(thousand units) 55,6 53,9 59,6 61,6 61,1 54,0
3. _”_ Non -state. property
(thousand units) 1200,8 1216,0 1226,7 1241,3 1261,1 1287,7
4. Residential flats (thousand units) 1828,2 1844,3 1861,0 1887,7 1909,8 1925,2
5. _”_ state -owned property
(thousand units) 136,2 137,4 138,4 143,1 145,6 140,1
6. _”_ Private property
(thousand units) 1676,4 1691,2 1704,2 1726,1 1744,4 1785,1
7. Total area of housing recources (mln
m2) 159,6 162,2 164,1 166,4 168,9 171,3
8. Residential area of housing
recources (mln m 2) 106,7 108,3 109,5 112,2 00 115,2
Note: The table was prepared by the author on the data of www.azstat.org .

Dynamic development is also noticeable in the
growth of residential housing for use of the population
in 2010 -2015. Thus, during this period, the number of
apartments steadily increased each year, and it was
1,925,200 units in 2015, which is 97,000 more
comparing with 2010. Growth ha s happened at the
expense of both state -owned and private housing units.
However, the number of private residences has
increased more (108700 units), it also indicates the
improvement living standards of the population.
Compared to 2010, the total housing stock was
11.7 mil lion. m2 and the living area increased by 8.5
million m2. in 2015.
The analysis shows that the housing conditions of
the population in Azerbaijan is always taken care of
government's attention and care. As a result,
sustainable and dynami c development has been made
in this area and continues to be enhanced.
5.Dynamic development of educational
infrastructures
While analyzing the infrastructural facilities of the
education system in Azerbaijan in 2010 -2016, we see a
steady decline in the nu mber of primary ge neral
education institutions and secondary specialized
educational schools year by year, constant number of
correspondence (evening) schools and higher education
institutions (universities), but an increase in the number
of primary vocati onal education and pre -school
education institutions.
Table 3
CURRENT CONDITION OF EDUCATIONAL INFRAST RUCTURE FACILITIES I N AZERBAIJAN
(2010 -2016) (PIECE)
N Indicators names: 2010 2011 2012 2013 2014 2015 2016
1. Full -time educational institutions 4532 4516 4508 4505 4475 4462 4452
2. correspondence (evening)
educational institutions. 7 7 7 7 7 7 7
3. Secondary schools 62 59 59 58 61 61 55
4. Higher Education Institutions 51 51 52 52 53 54 51
5. Primary vocational education 108 109 108 108 112 113 112
6. Pre -school ed ucational institutions 1635 1638 1666 1677 1680 1706 1722
Note: The table was prepared by the author on the basis of www.azstat.org .

Statistical analysis shows that, 126 preschools and
632 general education institut ions were built and put
into operation in the country in 2010 -2016. However,
as the table data shows, starting from 2010 the total
number of full -time education institutions have
gradually declined from 4,532 to 4,452 in 2016. During
this period the number of primary vocational education
institutions has gradually increased from 108 to 112 in
2016. The analysis shows that the educational policy
towards the professional development of students has
been successful and the demand for primary vocational
educati on institutions has increased in the country.
The number of pre -school educational institutions
increased by 87 units in 2016 compared to 2010,
reachi ng 1,722, indicates that the number of people
continues to grow. Population growth can be seen as an
indic ator of improving the welfare of the population in
the country.
6. Development of cultural infrastructures
The current view of infrastructure facilities in the
cultural sphere in Azerbaijan has been investigated in
recent years. It turned out that the numb er of
infrastructure facilities, such as public libraries, club
facilities, cultural and recreational parks declined, the

58 American Scientific Journal № ( 28) / 2019
numbe r of cinemas and museums increased slightly,
while the number of professional theaters and concerts
remained unchanged in 2010 -20 16.
Table 4
CONDITION OF CULTURE L INFRASTRUCTURE FAC ILITIES IN AZERBAIJA N IN 2010 -2016
(PIECE)
N Object names: 2010 2011 2012 2013 2014 2015 2016
1. Public libraries 3947 3883 3389 3320 3291 3242 3088
2. Club facilities 2772 2767 2747 2731 2729 2650 253 9
3. Cinemas 9 10 9 10 7 7 11
4. Professional Theaters 28 28 28 28 28 28 28
5. Concert facilities 13 13 14 15 14 14 14
6. Museums 226 227 227 228 233 234 236
7. Culture houses and recreational parks 365 366 347 346 347 347 348
8. Zoological gardens 1 1 1 1 1 1 1
Note: The table was prepared by the author on the basis of www.azstat.org .

Statistics show that 24 clubs and cultural houses
were built and put into operation in the country in 2010 -
2016. But, it can be seen from the table the total number
of public libraries, club facilities, cultural and
recreational parks has declined year by year since 2010.
In our opinion the main reason for the decrease in the
number of public libraries by 859 in 2016 com pared to
2010 was decreased interest in the use of libraries by
the population, preferring the use of the Internet and
information and comm unication systems for this
purpose.
The reason for the decline in the number of
cultural and recreational parks by 17 units during this
period was actions have been taken to consolidate and
upgrade the parks in accordance with the principles of
reconstruct ion and urban planning in Baku city.
7. Development of health infrastructures
The following changes have been made in the
health infrastructure.
Table5
CURRENT CASE OF HEAL TH INFRASTRUCTURES I N AZERBAIJAN IN 2010 -2016.
N The name of indicators: 2010 2011 2012 2013 2014 2015 2016
1. Hospitals (units) 756 516 523 539 553 566 559
2. Number of hospital beds (thousand
unit s) 67,4 45,8 42,4 43,2 44,1 46,4 44,9
3. Ambulatory -polyclinic (units) 1692 1688 1690 1725 1744 1746 1750
4. Total number of doctors (thousand) 32,8 33,1 31,4 32,3 32,4 32,8 32,5
5. Number of mid -level health workers
(thousand) 62,9 60,1 57,8 57,5 56,9 56,1 54,9
Note: The table was prepared by the author on the basis of www.azstat.org .

Statistical data shows that from 2010 to 2016, total
number of hospitals in Azerbaijan decreased by 197,
hospital beds - 22,500, t otal number of physicians - by
300 and average number of nurses - by 8,000, however,
considering that there is one doctor per 299 people, 1
nurse per 177 people, one hospital per 17362 and one
bed for 216 people, this is satisfactory in terms of health
car e in our country. İn this period, only 58 the total
number of outpatient clinics increased by 58 units.
In addition to all these it should be noted that
focusing on the development of health services The
Government of Azerbaijan has allocated f unds for th e
construction of modern diagnostic centers in many
regions and provided them with innovative technology
in recent years. According to the regional development
program 41 hospitals and 78 outpatient clinics were
built in many central cities that will meet modern
requirements in 2010 -2016. In these hospitals new
modern devices are installed on the basis of Japanese
technology. However, the analysis shows that 924,300
of the country's population went to neighboring
countries for medical examination in 2010 -20 16. The
number of foreign citizens arriving in our country was
260,900 for medical examination in this period. To
avoid this there is a serious need for a government
action plan to increase the reproduction of medical
personnel capable of managi ng new tech nological
devices. At the same time available financial resources
should be widely used to enhance the knowledge and
experience of doctors and nurses.
8. Development of tourism infrastructures
Recent years at the expense of the implementation
of regional development programs in, dynamic
development of tourism infrastructure is felt in
Azerbaijan significantly. Thus, in 2010 -2016 the
number of employees and tourism businesses increased
to a considerable extent, the culture of services was
risen.

American Scientific Journal № (2 8) / 2019 59

Table 6
TOTAL ECONOMIC INDIC ATORS OF TOURISM ACT IVITY IN AZERBAIJAN FOR 2010 -2016
N Indicators: 2010 2011 2012 2013 2014 2015 2016
1. Businesses engaged in
tourism (unit) 126 141 170 197 218 243 272
2. Employees engaged in
tourism (persons) 1418 1541 1730 1729 1794 1586 1838
3.
Foreign citizens came to the
country for tourism
(thousand people)
1279,8 1561,9 1985,9 2129,5 2159,7 1921,9 2044,7
4.
People traveling abroad for
tourism purposes (thousand
people)
1819,6 2308,2 2828,9 3306,7 3319,4 3256,2 3592,1
5. Ho tels and hotel -type
businesses (units) 499 508 514 530 535 536 548
6. Number of hotel rooms
(units) 14158 14815 15898 16559 17363 17953 20330
Note: The table was prepared by the author on the basis of www.azstat.org .

As can be seen from the table, the number of
tourism businesses in Azerbaijan has increased every
year, tourism busines ses numbers rose to 272 in 2016.
This is 146 units more than in 2010. The creation of
new tourism businesses resulted with an increase in the
number of tourism employees. Since 2016, 1838 people
have been engaged in tourism activities in the country.
Compa red to 2010, the number of employees increased
by 420. Every year, the number of employees working
in this area is rising.
The number of foreign citizens coming to our
country for tourism purposes is increasing. Only in
2016, 2044,700 people came to our c ountry for this
purpose, while 3592100 citizens of our country went
abroad.
With its rich cultural heritage and favorable
natural reso urces, Azerbaijan has great opportunities
for tourism development. There are ample
opportunities for the development of mo st types of
tourism in the country, such as agriculture, health care,
environmental, cultural, religious, and sports and so on.
Today the development of tourism and transformation
of the tourism sector into one of the leading sectors of
the country's econo my are one of the most important
tasks in Azerbaijan. The State Program for the
Development of Tourism in the Republic of Azerbaijan
for 2010 -2014 approved by the President's decree is
aimed for this purpose. The program focuses on the
establishment of tou rism infrastructure based on
international requirements and improvement of tourism
legislation. It is planned to organize eco -tourism
activities in national parks and other areas suitable for
environmental tourism and prepare regional tourism
development plans.
It is planned to establish a national Tourism
Training Center under the control of Tourism Institute,
to improve the relevant tr aining programs in high,
secondary schools and vocational educational
institutions which prepare tourism specialists. The
Sanitary and Hygiene Educational program will be
applied at the tourism facilities, new tourism
educational tools will be explored and proposals on
their using will be developed based on international
standards.
During this time, t he hotel business has undergone
significant changes, the number of hotels and their
rooms were increased. The hotels are mainly equipped
with modern facilities .
The radical reforms and targeted actions for the
development of tourism in the country show the
progress of this area that will continue in the future.
9. Social security of the people.
A lot of work has been done to ensure the social
protection of the p opulation and improve the welfare
through the social security line. As a result of the
measures p ensions, allowances, scholarships and
monthly state social assistance were increased in the
country.
Table 7
SITUATION OF SOCIAL PROTECTION OF THE PO PULATION IN AZERBAIJAN IN 201 0-2017
N indicators: 2010 2011 2012 2013 2014 2015 20 16 2017
1 Pensioners (thousand people) 1308 1292 1278 1272 1277 1291 1299 1315
2 Social benefits (thousand people) 294 297 309 317 316 338 351 369
3 Scholarship recipient (thousand
people) 33 34 34 35 35 52 55 58
4 families receiving social assistance
(thousand families) 657 553 542 590 626 415 452 558
5 Average monthly pension (manat) 100 112 145 152 171 173 178 192
6 Monthly allowance and compensation
per person (manat) 35 40 44 44 50 51 51 56
7 Monthly pension per person (manat) 93 112 120 117 135 126 121 132
8 Targeted state social assistance (Man) 25 24 24 26 29 33 36 36

60 American Scientific Journal № ( 28) / 2019
Note: The table was prepared by the author on the basis of www.azs tat.org .

As can be seen from the table, in 2017the number
of pensioners increased by 7200 and amounted to
1315,200 people compared to 2010, the number of
recipients of social benefits increased by 75,000 and
was to 369,000, the number of recipients of
scholarships increased by 24,900 and reached 57,800.
The number of families receiving targeted state social
assistance has been steadily declining each year and
was 558,100 in 2017. From 2010 to 2017, 99,200
families refused to receive targeted social assis tance.
The increase in the number of people receiving
pensions is an indication that the average life
expectancy of the population has enhanced recently,
and the decline in the number of families receiving
targeted social assistance is an indication of an
improvement in the welfare of the people.
The average monthly allowance increased by 92
manat, while the monthly compensation and benefits
for one person increased by 22 manat, the amount of
monthly pensions per person rose by 39 manat, and the
amount of targeted sta te social benefits increased by 11
manat.
All these show that improvement of the financial
situation of low -income citizens is covered by
government care in our country. Improving the
financial situation of the population is one of the
founding elements of sustainable economic
development. After gaining its independence,
Azerbaijan entered a political democratic society way.
Recent years state budgets are socially oriented and
gave impetus to the implementation of social policy of
the state and development of social infrastructure.
Education, culture, art, health, etc. form the main
directions of social policy of the state and sphere of
social activity. From this point of view the government
pays great attention to the constant development of
soc ial - cultur al spheres and social infrastructure.
10. Econometric evaluation of impact of
production factors on the total output of social
infrastructure
At present, the state's social policy is aimed at
meeting the needs of the people in social services -
education, science, health, culture and arts, as well as
further strengthening social protection. For this purpose
large sums are allocated from the state budget annually.
As a result of purposeful actions total output in social
infrastructure increased 1 .7 times in 2016 in real terms
compared to 2005. Fixed assets increased 1.1 times,
and the number of employees increased 1.2 times
during this period.
The impact of production factors on social
infrastructure.
Table 8

Total for Social Infrastructure
(Voc ational, scientific and technical activities, Education, Health and social services,
Entertainment)

Total output (million manat) Funds (million manats) Worker (thousand people)
2005 5.216,28 11.051,30 613,80
2006 5.528,12 10.792,20 628,20
2007 5.815,66 10.133,20 646,90
2008 6.242,58 8.134,50 667,00
2009 6.624,20 7.513,20 667,60
2010 6.826,10 7.786,70 670,00
2011 7.316,07 7.855,10 665,70
2012 7.847,89 8.292,50 713,30
2013 8.322,55 8.519, 00 724,40
2014 8.683,38 9.234,30 730,30
2015 9.096,88 11.735,40 733,70
2016 8.992,85 12.486,00 737,00
Note: www.azstat.org The table is based on the data of the State Statistical Committee of the Republic of
Azerbaijan and the nominal values were converted to real values by the author.

The Cobb -Douglas function was evaluated
according to the following formula, as an example of
social infrastructure to evaluate the productivity of
productio n factors affecting the overall output.

(3;4)

American Scientific Journal № (2 8) / 2019 61

The Model is built through the software Eviews 9
package using the data from Table 8 as follows
Dependent Variable: LOG_BU
Method: Least Squares
Date: 02/27/19 Time: 18:24
Sample: 2005 2016
Included observ ations: 12

Variable Coefficient Std. Error t-Statistic Prob.
LOG_K 0.666648 0.321519 2.073434 0.0680
LOG_L 2.581307 0.266993 9.668050 0.0000
C -14.20251 2.071311 -6.856773 0.0001
R-squared 0.969235 Mean depend ent var 8.866099
Adjusted R -squared 0.962398 S.D. dependent var 0.194085
S.E. of regression 0.037635 Akaike info criterion -3.509426
Sum squared resid 0.012748 Schwarz criterion -3.388199
Log likelihood 24.05656 Hannan -Quinn criter. -3.554309
F-statistic 141.7688 Durbin -Watson stat 2.323641
Prob(F -statistic) 0.000000
Estimation Command:
=========================
LS LOG_BU LOG_K LOG_L C
Estimation Equation:
=========================
LOG_BU = C(1)*LOG_K + C(2)*LOG_L + C (3)
Su bstituted Coefficients:
=========================
LOG_BU = 0.666648327341*LOG_K + 2.58130655131*LOG_L - 14.2025093722
If the result is changed to the standard form of the Cobb -Douglas production function, the function is as
follows:

1. In the social i nfrastructure we analyzed, the productivity of production factors in general is as follows:
a) Capital productivity in 2016 was calculated as follows and amounted to 0.779. In other words, service
worth 779,0 thousand manats was provided for each million m anat of capital:

b) Labor productivity in 2016 was calculated as follows and amounted to 13.19. In other words, service worth
13,19 thousand manats was provided by per thousand workers:
2. Maximum productivity of production factors in social infrastruct ure is calculated as follows:



=0,0000007*2,58*6,658 0,000012

Comparing the growth rates, we can say that
additional increases in fixed assets and manpower will
rise overall output.
3. Elasticity of total output from the amount of
resources in social infrastructure:

a) The elasticity of the total output from capital is
calculated as follows:
b) The elasticity of the total output from labor is
calculated as follows:

62 American Scientific Journal № ( 28) / 2019

The result of the comparison shows that to
increase the workforce in the social i nfrastructure
selected for analyzing enhances the release of services.
It means a one percent increase in the workforce will
result in a 2.58% increase in total output, a one -percent
increase in fixed assets results in an increase of 0.67
percent of total release
11. Conclusion
The analysis of the current state and development
of social infrastructure provides the following
conclusions:
1. Current situation and expectations for the
development of social infrastructures that promote the
development of the so cial and economic sphere in
Azerbaijan are surrounded by government care to the
extent that it meets the requirements of sustainable
socio -economic development;
2. Renewal, modernization and development of
social infrastructure facilities in education, hou sing and
communal services, culture, health, tourism will
stimulate sustainable development of the social sphere
in the future.
In our opinion, with the aim of optimizing
employment, reducing poverty an d further improving
the socio -economic situation in th e country, the
followings may be helpful:
1. prefer public -private partnerships in the
construction of social infrastructure facilities;
2. To change management and property relations
in housing and com munal services and to transfer them
to the territorial municipal administration and
municipal property;
3. to restructure of personnel units in social
infrastructure, to set work places to work condition at
the expense of reducing redundant and unnecessary
staff units;
4. Taking into account the increase in t he tourist
flow to the country since the tourism and hotel farms
are interconnected each other the number of hotels
should be increased in eco -tourism areas, and prices
should be adjusted
5. Modernize e xisting social infrastructure
facilities;
6. Ensure so cial infrastructure facilities with
qualified personnels for the purpose of good
management and perfect business activities
7. The results of the study of the efficiency of
production factors affecting the total output of social
infrastructures show that i f the investment in social
infrastructure is to increase fixed assets, it would be
more efficient to develop qualified vocational training
and improve vocational training.

LITERATURE:
1. State Program on social -economic
development of the regions of the Repu blic of
Azerbaijan (years of 2014 -2018). Baku: Nurlar, 2014,
175 p
2. “Azerbaıjan 2020: Look Into The Future”
Concept Of Development. Approved by the Decree of
the President of the Republi c of Azerbaijan dated
December 29, 2012
3. Azerbaıjan - 2030: From The Mıl lennıum
Development Goals. Towards The Sustaınable
Development Goals. Voluntary National Report 2017.
2017. 80 s.
4. Мохамад, А.С. Социальная
инфраструктура: партнерство государства и
бизн еса // Вестник высшей школы. 2013, № 1, с. 55 -
58
5. Hasanli Y.H. Introduct ion to econometrics.
Textbook, Baku, 2008, 236 p.
6. Hasanli Y.H., Hasanov R.T. Applied
Mathematical Methods in Economic Research. Baku,
2002, 303 p.
7. Alirzayev A.K. The economics and
manag ement of social sphere. Textbook. Baku:
Economics University Publishing , 2010, 326 p.
8. Statistical data of Azerbaijan 2017. Baku:
2017, 848 p
9. Aliyev I.H., Mammadov Y.A. Theoretical and
methodological foundations of “Azerbaıjan 2020: Look
Into The Future” Concept Of Development. Baku.:
European publishing house, 2012, 90 p.
10. Ali yev I.H., Y.A Mammadov. Application of
“Azerbaıjan 2020: Look Into The Future” Concept Of
Development. Non -oil industry development program
in the Republi c of Azerbaijan .Baku: European
publishing house, 2014, 130 s.
11. Mammadov H.A. Classification Of
İnfrast ructures. İnternational Scientific
Journal.Theoritical & Applied Science,
Philadelphia,USA, THOMSON REUTERS, 2018,
02(58), p.35 -39;
12. Mohamad, A.S. Social i nfrastructure:
partnership. Mohamad, A.S. Social infrastructure:
partnership of the state and business // Higher state and
business // Higher School Bulletin. 2013, No. 1, p. 55 -
58.
13. Valiyev T.S. Infrastructure: essence,
classification and significance. Bak u: Science, 2000,
169 p.
14. www.azstat.org