Assessing the Interdependence of Oil Industry Indicators on Kazakhstan's Economy

Abstract

The impact of oil production on the regional economy and average wages is widely discussed among economists and politicians. The oil industry is one of the main sectors of the economy of Kazakhstan and makes a significant contribution to the country's GDP. An assessment of the interdependence of the indicators of the oil industry on the economy allows us to understand what factors affect the development of this industry and, accordingly, the country's economy. This study provides a comprehensive overview of the impact of oil production on the regional economy and average wages, with a focus on the importance of diversification and sustainability strategies for long-term economic growth. The purpose of this study is to study the positive and negative aspects of the impact of oil production on the region's economy and average wages. The research methodology involves two stages of empirical analysis of oil production data and economic indicators in the region from 2016 to 2021. At the first stage, a correlation analysis (Pearson correlation) was carried out; at the second stage, a predictive regression model was built. The study shows that oil production has greatly contributed to the economic growth and development of the region, which has led to an increase in average wages and improved living standards. The findings of this study are of great importance to policy makers and stakeholders involved in the development of the oil industry in the region.