Contradictions of institutional and economic environment: Experience of Kazakhstan
Abstract
Objective: The purpose of the study is to assess the quality of economic growth in Kazakhstan. An attempt has been made to provide an analysis of the institutional and economic environment and an econometric assessment of the real indicators of the country’s development.
Research Design & Methods: To assess the degree of influence of certain indicators on economic growth, a regression analysis was carried out. For this, data were collected from 15 countries for 2000-2018. Since the sample combines temporal and spatial data, a panel data regression model was built to analyze the effect of the considered explanatory variables on GDP. To study a model with these characteristics, two different models can be used: a fixed effects (FE) model and a random effects (RE) model.
Findings: Based on the historical and logical analysis of theoretical and methodological approaches to the study of economic development and the constructed regression model of panel data, it is shown that an increase in the level of indicators selected in official statistics has a small effect on economic growth, that is, there is a discrepancy between target indicators government programs and actual results. The institutional features of the Kazakhstani development model, which cause economic lag, are revealed.
Implications & Recommendations: The current cyclical transition, complicated by the Covid-19 pandemic, has revealed weak links in the economies of many countries, caused by systemic contradictions accumulated over 30 years. Kazakhstan, as a country that has been building market relations only since the end of the 20th century, found itself in the grip of not only economic and political, but also institutional costs. One of the problems hindering the economic development of the nation is the contradiction between the political ambitions of the authorities and the real results of the implementation of state programs, the loss of public confidence.
Contribution & Value Added: The country’s development prospects are primarily predetermined by the state’s ability to solve accumulated problems. Therefore, it is important to identify them, solve, and then predict the real parameters of the country’s development. The importance of such a methodological approach is noted by scientists from the post-Soviet countries, who study the factors that hinder the development of these countries.
Keywords
business environment; institutions; institutional economics; new markets; real economic growth; social inequality; quality of life of the population
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Al-Farabi Kazakh National University Kazakhstan
https://orcid.org/0000-0001-7057-8586
Associate Professor at Al-Farabi Kazakh National University (Kazakhstan). The main research specialization is the world economy.
Al-Farabi Kazakh National University Kazakhstan
https://orcid.org/0000-0002-3205-0948
PhD Student at the Department of Economics of Al-Farabi Kazakh National University (Kazakhstan). The main research specialization is international competitiveness and green economy.
Al-Farabi Kazakh National University Kazakhstan
https://orcid.org/0000-0002-6710-415X
Bachelor in Finance (2012), Master in Finance (2014). Currently PhD Student at Al-Farabi Kazakh National University (Kazakhstan).
Al-Farabi Kazakh National University Kazakhstan
http://orcid.org/0000-0002-6532-1652
PhD in economics. Lecturer at Al-Farabi Kazakh National University (Kazakhstan).
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