Economy Of Kazakhstan Research Articles

Future of Oil and Gas Trade of Kazakhstan in the European Union Context – Application of Time Series Analysis

Abstract Energy is a fundamental factor in cooperation between Kazakhstan and the European Union; both sides strive for energy security but understand it differently. For Kazakhstan, the European Union is the primary export market for energy resources, a source of investment and technology. For the European Union, Kazakhstani oil and gas are the most valuable energy resources of the Central Asian region. The relevance of the chosen topic is that oil and gas are of crucial importance for the economy of Kazakhstan. In the future, Kazakhstan is going to increase production with the European Union. Kazakhstan’s oil and gas industry can be attributed to one of the leading sectors of the country’s economy. The purpose of the scientific paper is to analyse the oil and gas trade between Kazakhstan and the European Union using a time series model to examine Kazakhstan’s oil and gas trade flow, in order to describe its top 5 trade partners in the European Union, also providing objective information on the results and prospects of development of cooperation between Kazakhstan and the European Union in the field of oil and gas trade.

The Role of Tax Revenues in Ensuring Sustainable Economic Growth of the Republic of Kazakhstan

The purpose of the research is to substantiate the scientific concept of the role of tax revenues in ensuring sustainable economic growth of the Republic of Kazakhstan. In accordance with the set task, the following tasks were solved in the study: to study the theoretical aspects of tax revenues and its impact on economic growth; to analyze and give an objective assessment of tax revenues.
 The methods of statistical, comparative, and factor analysis were used, and a historical, systematic, and comprehensive approach to the presentation of the material were applied.
 In analysis of findings and results, certain provisions were used from the practice of the Department of State Revenue for the city of Almaty and the Public Association "Chambers of tax consultants of the Republic of Kazakhstan".
 The scientific novelty of the research is that on the basis of a theoretical study of the current state of taxation, possible directions for increasing the degree of impact of the tax system on economic growth are justified. The following is the rationale for the place of taxes in the system of factors of economic growth. It is noted that taxes can play not only a negative, but also a positive, and even an active role in changing the dynamics of economic growth; the values and structure of tax revenues for regions and the country as a whole are analyzed.
 Theoretical and practical significance of the study lies in the possibility of using the obtained scientific results in the activities of the Ministry of Finance of the Republic of Kazakhstan and its structural subdivisions, the tax authorities at various levels, the Ministry of national economy of Kazakhstan. This research, being fundamental, can be used as a basis for training specialists in the field of Finance and taxation.

THE DEPENDENCE OF THE KAZAKHSTAN ECONOMY ON THE OIL SECTOR AND THE IMPORTANCE OF EXPORT DIVERSIFICATION

The recent decline in oil prices caused Kazakhstan, like many oil-dependent countries, to lose its financial resources and weaken economically. In Kazakhstan, which supplies about 50% of budget revenues from oil and petroleum products, the currency (KZT) has depreciated by 20% in the first and 60% in the second stage due to oil prices falling sharply in 2014. Also in March 2020, the Kazakh tenge, which was affected by the drop in oil prices, depreciated by 18%. The fact that oil revenues are not used correctly and strategically in time and the necessary attention to non-oil sectors has an effect on this. In order to get out of this situation, it is important for Kazakhstan to give importance to the development of non-oil sectors and to ensure the development of exports in these sectors. In this study, the importance of the oil sector in Kazakhstan economy and the current situation of non-oil sectors are examined. In addition, suggestions and recommendations were given for the development of the non-oil sector and exports.

Production resources as the basis of innovative approach in modernization of production of the enterprise

Measures for the rational use of all groups of resources of any object of research are most relevant at the present stage of development of the economy of Kazakhstan from the standpoint of macroeconomic indicators. The importance of the above circumstance makes it possible to take into account the change in the performance indicators of the enterprise and the influence of factors on the final results of the economic activity of the enterprise. Elements of competition always allow us to assess the situation and make the necessary important decisions for a business entity. In this case, all resource groups that the enterprise possesses must be taken into account. Particular importance should be given to production resources, since they make it possible to assess the material and technical base of an enterprise, plan long-term tasks and evaluate the predicted values of indicators of economic and financial activity of any object of research. It should also be borne in mind that the assessment and analysis of enterprise performance indicators are important for improving the efficiency of production resources and determining the hidden reserves of the object of research. This article discusses the possibility of introducing an investment project into the activities of a joint-stock company as an element of the innovative improvement of the mechanism for using production resources in order to obtain greater profits and economic benefits. The proposed project is fully consistent with the industrial and innovation policy of Kazakhstan and has government support.

Problems of the tax system of the Republicof Kazakhstan and ways to solve them in the framework of optimizing the tax mechanism

The article is devoted to actual problems of functioning of the tax mechanism in the Republic of Kazakhstan. The author studies the characteristic features of the tax mechanism. Tax policy occupies a leading position in the field of state methods of influencing economic processes. Priorities for the development of the economy of any state are largely determined by the level of tax payments achieved, which are a consequence of the tax burden, in particular, its maximum permissible level in the conditions of modern economic policy and tax legislation. The modern tax system of Kazakhstan lacks a stimulating initiative, which in modern conditions of development should be implemented in the implementation of all tax functions - fiscal, distributive and regulatory. Based on the study of statistical data, the effectiveness of the tax mechanism and the tax system was determined. According to the author, the tax system should be based on optimal coordination of interests of all social groups of society - entrepreneurs, workers, civil servants, students, pensioners, etc. The author offers recommendations for a consistent reform of the tax system, implemented in the modern conditions of the economy of Kazakhstan. The aims of the state to determine the optimal limits of the tax burden will contribute to the development of production and create conditions for the growth of the national economy.

Models and forms of public and private partnership in modern conditions

In economics many attempts are made to reveal the essence of such concepts as the model and form of public and private partnership. In addition, in modern practice, in the process of searching for the most optimal variant of interaction between the state and private structures, there is a wide variety of forms, types and models of public private partnership. Throughout the entire period of transformation of the economy of Kazakhstan, many of them were underestimated, despite the fact that they cover the basic aspects of society and ensure their harmonious development. For quite a long time, the state cannot fully implement many major infrastructure projects. Various forms and models of partnership between the state and private entities could help to solve these problems. Moreover, in the context of innovative development, this type of interaction between government and business will receive a new impetus in the development and application of new forms of public private partnership that meet modern realities. It should be noted that the conditions of contractual relations in our country are usually extremely complex and unstable. All this requires the creation of a contractual procedure that would include the entire general scheme of the main elements of such contracts, taking into account their features.

Возможна ли экономическая интеграция в Центральной Азии? Региональный вектор политики Казахстана

<span> В статье рассматриваются проблемы регионализма и конфликтов интересов стран Центральной Азии (ЦА), создающих препятствия к внутрирегиональной интеграции, показана особая роль, которую играет в субрегионе Казахстан. По данным статистики торговли и движения капитала оценена степень интегрированности экономик Казахстана, Кыргызстана, Таджикистана, Туркмении и Узбекистана. Показано, что пользование водными ресурсами усиливает конфликтность отношений между странами Центральной Азии. Рассмотренная история современных интеграционных процессов в странах ЦА свидетельствует о слабом потенциале внутрирегиональных экономических и политических связей. Экономические структуры и пространственное размещение производительных сил таковы, что при нынешнем уровне технологического развития, накопленного капитала и расклада внешних политико-экономических интересов ЦА, вероятнее всего, окажется не субъектом, а объектом развития интеграционных процессов. До конца 2010-х гг. в регионе доминировала экономическая и военная мощь России. К концу этого периода все четче прорисовывается лидерство Китая. Казахстан играет первую скрипку в экономическом ансамбле центральноазиатских республик. От его выбора, с кем и как вступать в альянсы, будет зависеть профиль региональных экономических и политических структур.</span>

Regional development of small and midsize businesses in the conditions of forming of innovative economy of Kazakhstan: a case study

Regional development of small and midsize businesses in the conditions of forming of innovative economy of Kazakhstan: a case study

Trends and Development Prospects of Ayagoz District of East Kazakhstan Oblast in the Conditions of Transformation of the Region’s Economy

Industrial development is the most important task for the economy of Kazakhstan. In 2010, a course was taken to diversify the economy. In 2010–2014 implemented was The State program of forced industrial and innovative development. Today, the implementation of the second five-year industrialisation period is nearing its completion. The aim and tasks of research is to conduct a comprehensive description of the impact of the Aktogay mining and processing complex on the components of the socio-economic development of the region. To achieve this goal, the following tasks must be completed: analyse the state of socio-economic processes in the Ayagoz district of the East Kazakhstan oblast for the study period; describe the impact of the Aktogay mining and processing complex on the current state of socio-economic development of the East Kazakhstan oblast. In the framework of the State program of forced industrial and innovative development of the country in 2010–2014 a total number of 162 projects were implemented with a total investment of 41.9 billion dollars. One of the “breakthrough projects” is the construction of the Aktogay mining and processing complex in the East Kazakhstan oblast. The construction of the Aktogay MPC contributes to: the development of the economy of the Ayagoz district of East Kazakhstan oblast; increase of the potential of mining industry of Kazakhstan through the introduction of new technologies that are used in extraction and processing of ore, as well as in the production of the final product. The article analyses the state of socio-economic development of the Ayagoz district and East Kazakhstan oblast before and at the operation of the Aktogay MPC. Indicators were selected by social and economic blocs for 2009–2018. Taking into account the particular location of the Aktogay MPC, criteria were selected for each component of the socio-economic environment that reflect both the positive and negative residual effects of non-ferrous metallurgy enterprises. The significance of positive and negative impacts for each component was evaluated using statistical data on socio-economic indicators. For analysing the social environment of East Kazakhstan oblast, indicators were the measures of favourable or unfavourable activities in meeting the social needs of the population of the region. For analysing the economic development of the region, the indicators are a comparative assessment of the effectiveness of the enterprise for the economy of the region.

Formation and development of digital economy in Kazakhstan

The article discusses the current stage of transition to digitization, the role of information and communication technologies (ICT) in the industrial revolution, gives a brief description of technological structures in the world of technical and economic development. The natural resource-based economies of the Republic of Kazakhstan and the Russian Federation are quite similar; therefore, it is appropriate to take into consideration positive aspects of development and share of experiences between the two countries, including that in the field of forming and developing digitization. The main condition for the transformation of the national and global economy into an electronic format is the level of development of the ICT industry. In the article the level and dynamics of the basic indicators of the functioning of the ICT sector in Kazakhstan are analyzed. The analysis of the share of production and services in the ICT industry in relation to GDP in dynamics is presented. GDP dependence on production volumes and ICT services is analyzed using economic-mathematical modelling. Recommendations on using the research results for other territories, including the Russian Arctic zone are given.

Analysis of successful experience of innovative enterprises in the regions of Kazakhstan

In the context of the current level of development of the knowledge-based economy of Kazakhstan, characterized by a huge shortage and dissociation of research personnel, lack of innovative ideas for commercialization, the concentration of efforts of the state and the business community on researching the problems of effective research and development funding seems more than appropriate. In Kazakhstan, the main reason for the low impact of innovation is also the lack of funding for research and development, as well as the low efficiency of financial resources in the scientific sector. This is evidenced by official statistics, as well as the cost of private financing of research and development in Kazakhstan per capita is $ 247, and the level of state funding is $ 4, which is one hundred or two hundred. times less compared to the leading countries of the world. In this paper, the study of examples of the implementation of funding of high-tech industries in the regions of Kazakhstan. The implementation of this study allows us to identify the most successful experience in implementing innovation activities in high-tech companies in Kazakhstan, which makes this work relevant. The research methodology includes such methods of knowledge of economic phenomena and processes: economic and statistical analysis, conducting qualitative analysis based on questionnaires, interviews. A survey of 1155 companies was conducted, according to the results of which 30 interviews were conducted, which made it possible to carry out a correlation-regression analysis of the dependence of the factors influencing the innovative development of companies. The research results will allow to study the experience of successful companies, to identify growth points, as well as provide an opportunity to improve the system of financing high-tech industries. The practical and theoretical significance lies in the fact that its main conclusions and recommendations can be used to develop effective strategies and tactical tools of innovation policy in high-tech enterprises.

THE INFLUENCE OF FISCAL PROGRESS ON ENERGY CONSUMPTION IN KAZAKHSTAN

Among the strategic goals of the European Union (EU) is to upsurge the consumption of green energy in its member states, bringing together financing, technological, and innovations around customer engagement. Most researchers have been conducted around the green economy in Kazakhstan, but petite examination has been done on the influence of the fiscal sector on renewable consumption of energy. This research paper centers on the link between energy usage, economic progress, fiscal expansion, and energy prices in Kazakhstan using the Vector Error Correction Model Technique. The valuation results revealed a positive and substantial influence on economic and financial development on the consumption of energy. Prices of energy represented by the Consumer Price Index had an indirect influence on the consumption of energy. These two analyses are in tandem with theoretical findings and expectations. Further, the findings depict that a percentage increase in fiscal and economic growth leads to increased energy usage by 0.11% and 0.39%, respectively. Keywords: financial development, economic progress, energy consumption, renewable energyJEL Classifications: Q16, 016, 044DOI: https://doi.org/10.32479/ijeep.9784

ENERGY INTENSITY OF KAZAKHSTAN’S GDP: FACTORS FOR ITS DECREASE IN A RESOURCE-EXPORT DEVELOPING ECONOMY

Kazakhstan continues to use several times more energy per production unit than more developed countries and regions of the world. This study is the first comprehensive review and analysis of energy intensity factors of Kazakhstan's gross domestic product for the priod of 1990-2018. We have studied the influence of various factors on the GDP energy intensity: indicators characterizing the country's economic growth, power industry and living standards development. Calculations made have shown that the most significant influence on improving the energy efficiency of the economy is exerted by the indicators of Net Energy Imports and GDP per capita at PPP. The calculated elasticity coefficient shows that with an increase in the value of Net Energy Imports by 1%, the expected decrease in energy intensity shall be 0.85%. With an increase in GDP per capita of 1%, the expected decrease in energy intensity shall be 0.44%. However, in Kazakhstan, the influence of GDP per capita is mediated by the export of energy resources, which is confirmed by the high correlation between GDP growth, total energy production and export. We are concluding that for the developing economy of Kazakhstan exporting energy resources, the conversion of primary energy into products with high added value is more rational for economic development and energy conservation.Keywords: Energy Resources, Energy Intensity, Energy and Growth, Energy Policy, KazakhstanJEL Classifications: O13, Q43, Q48DOI: https://doi.org/10.32479/ijeep.9817

Digital Transformation Enablers and Barriers in the Economy of Kazakhstan

This study aims to analyze the digital performance of Kazakhstan through dynamic analysis of national statistics and international indices as Global Innovation Index and ICT Development Index. The research combines three stages: analysis of digital transformation policies performance, review of ICT industry development, and comparative analysis of the positions of Kazakhstan, Turkey and South Korea as a benchmark in the international indices. This research findings show that despite great efforts of Kazakhstan in digitalization, the ICT industry contribution does not increase, it even falls. The international indices demonstrate that the reason is the weakness of the country in skills, venture capital, and innovation linkages. This leads to low knowledge, technology outputs, and creative outputs. The enablers of digital and overall innovation advancement of economy are identified. According to the international rankings the country has been doing its best in Access and Use areas. Another enablers are good business environment, ease of starting a business, protecting minority investors, and FDI inflows. The findings help to draw recommendations for strategic directions in order to improve the digital performance in Kazakhstan. The main limitation of this study is a lack of dynamic information on positions of Kazakhstan in other international indices related to digitalization.

Adoption of e-Government in the Republic of Kazakhstan

Information and Communication Technology has been gaining importance in the economy of Kazakhstan, the largest landlocked country. In this paper, we investigate the factors that influence Kazakhstan’s e-Government portal use at the informational stage and describe the challenges encountered by citizens while using the portal. Statistical analysis is performed on a web-based questionnaire survey targeted at citizens of Kazakhstan. The technology acceptance model is used as a methodology to measure attitude towards portal usage. This paper also discusses the barriers that can restrict the successful adoption of e-Government services. The results show that awareness among citizens is high and they perceive the portal to be useful, but only a limited percentage of citizens actually use it regularly. The results of this paper could be used to help the IT managers of the portal to improve the management of informational content and maintain more effective adoption among citizens.

FROM THE HISTORY OF ECONOMIC DEVELOPMENT OF KAZAKHSTAN AFTER THE CIVIL WAR (1920-1924)

The article analyzes a new view of the history of economic development of Kazakhstan after the civil war. The purpose of the work is to identify problems, analyze the implementation of the social and economic policy of Soviet power. In this article, there are new transformations in the political, economic and social life of Kazakhstan and the difficulties in its implementation. The ongoing work on restoration of peaceful life, destroyed economy and economy in Kazakhstan is indicated. The reasons for the decline in economic life, destruction, poverty and hunger in Kazakhstan are indicated. As a result of hunger, cold and the accompanying diseases, the demographic situation in the nomadic and semi-nomadic regions of the republic deteriorated – the population of the rural population in many provinces decreased to 1/3, more than 700 000 people left Kazakhstan.

Digital economy of Kazakhstan: theoretical aspects, development opportunities

Object: The aim of the study is to analyze the state of digital transformation of the national economy, identify existing contradictions and risks. Conducting a study of digital economy indices of the Republic of Kazakhstan, building a forecast for the development of digital economy.Methods: In the course of the study, the following methods were used: observation, generalization, comparison, analysis, systematic approach, systematization of materials, processing.Results: As a result of the study, a comparative analysis of the theoretical prerequisites for the definition of the term “digital economy” was carried out, differences to the definition based on a study of the opinions, opinions of scientists, experts were generalized, patterns of evolutionary development of the digital economy were revealed. The article substantiates and proposes the author’s definition of the concept of “digital economy”. The analysis of the state of the digital economy of Kazakhstan is carried out, the main trends, contradictions in the development of the digital economy, other “bottlenecks” that inhibit the development of the digital trend are identified. The forecast assessment of the development of digital literacy of the population for the near future is presented.Conclusions: Based on the study of digitalization experience of other countries, the main indicators of the development of the country's digital economy are considered, their forecast estimates of development are calculated. On this basis, the author proposed a forecast of the future development of the digital economy. Finally, main conclusions and recommendations for development of the digital economy of Kazakhstan for the medium term are made.

Trade Policy Issues of Oil-rich but Land-locked Country Case: Focusing on Kazakhstan Post-WTO Entry

Purpose The economic recession of Kazakhstan coincided with its World Trade Organization (WTO) membership. Some experts claim that the membership exacerbated the recession further. This paper tries to assess whether the WTO entry hurt the economy of Kazakhstan. Design/Methodology/Approach The paper collects Kazakhstan’s tariff commitments to WTO members from the World Integrated Trade Solution (WITS) and WTO official websites. It then aggregates the data in terms of region and economic sectors. The Global Trade Analysis Project (GTAP) Computable General Equilibrium (CGE) model is employed to simulate the trade liberalization and the oil-price shock scenarios. Findings The economic modeling underlines that the WTO membership is not a cause for the economic recession of Kazakhstan. Instead, Kazakhstan’s GDP and welfare rose as a result of WTO entry. In contrast, the oil price plunge, as well as Kazakhstan’s involvement in Customs Union (CU), deteriorated the terms of trade and declined the economic growth. Research Implications This research is the first attempt to assess the effects of Kazakhstan’s WTO membership using the GTAP CGE model. It shows that Kazakhstan’s WTO entry was the right step toward global integration. It also signals that Kazakhstan should diversify its economy, export structure, and trade route in order not to face the next economic recession due to an unexpected energy price plunge.

The role of public sector in the economy of Kazakhstan

Achieving the goals and objectives in the economy determines the implementation of specific functions and many interrelated elements, in which the public sector plays a key role. Moreover, according to the conclusions of economists, an increase in the public sector negatively affects competition in the country's economy and slows down GDP growth. The relevance of the topic lies in the fact that under modern realities there is an increase in state participation in all spheres, especially in the economic sphere. This article considers the public sector as an integral element of the organization of the functioning of a modern market economy. It also analyzes issues related to the management of the public sector and the regulation of its share in the economy.

The Fourth Energy Transition and Development of Energy Sector in Kazakhstan

The relevance of the subject matter is conditioned upon the fact that currently the main direction of global energy development is already clearly visible: under the influence of changes in energy policy and the development of new technologies, the world is entering the stage of the fourth energy transition to the widespread use of renewable energy sources and displacement of fossil fuels. The development of Kazakhstan's economy requires the transition of energy towards clean and safe renewable sources, which will let the country build a new strong economy and break out of the long-running socio-economic decline, help the international community solve the problem of climate change and improve the safety and welfare of its citizens. The purpose of the study: The purpose of the paper is to develop recommendations for the development of Kazakhstan's energy industry at a new stage in the fundamental transformation of the global energy system. Leading approach to researching the problem. The leading methods of researching the problems of the paper include the analysis of theoretical sources, analysis of statistics, and comparison. Analysis of statistical indicators plays a crucial role in the study, since data on the development of Kazakhstan's energy industry can be directly obtained from statistical databases. The results of the study. The paper discusses the essence of the fourth energy transition, its main aspects, explores renewable energy sources, identifies the features and problems of Kazakhstan's energy industry, and develops ways to solve them. Prospects for further research. To implement the modern provisions of the fourth energy transition in Kazakhstan, it is necessary to use a systematic approach. The basic elements of such a transition are the introduction of renewable energy and energy efficiency (the intensification of reducing the energy intensity of goods and services). The materials of the paper are of practical value for the development of Kazakhstan’s energy during the period of fundamental structural transformations of the world energy sector.