The journal uses continuous publication model. Current issue is in progress.
Published Online: Nov 3, 2025
Development institutions and intersectoral dynamics of Kazakhstan's economy
Published Online: Nov 3, 2025
Email:
a.yessengeldina@astanait.edu.kz
Astana IT University, Astana, Kazakhstan
Email:
aidos.abayev.kz@gmail.com
Karaganda National Research University named after Academician E. A. Buketov, Karaganda, Kazakhstan
Email:
gulvira.akybaeva@astanait.edu.kz
Astana IT University, Astana, Kazakhstan
Email:
u.yusupov@kaztbu.edu.kz
Kazakh University of Technology and Business named after K. Kulazhanov, Astana, Kazakhstan
Email:
b.bayadilova@kaztbu.edu.kz
Kazakh University of Technology and Business named after K. Kulazhanov, Astana, Kazakhstan
Views: 208
Downloads: 14
Download PDF
Abstract:
The study examines the structural impact of Kazakhstan's financial development institutions (DBK, the Damu Foundation, and the Agrarian Credit Corporation) on the national economy using an analysis of intersectoral relationships. The purpose of the study is to assess the degree of influence of institutional financing of development on the formation of sustainable inter–industry relations and structural effects in the economy of Kazakhstan. Methods: The analysis is based on the official symmetrical input–output tables of the Office for National Statistics for 2012-2021. Based on the inverse Leontief matrix, output multipliers and rootedness coefficients are calculated to evaluate direct and inverse relationships. The sectors receiving institutional financing are identified based on data on lending and subsidies. Panel regressions with random effects, nonparametric Mann-Whitney U-tests, and trend analysis were used to test the differences. Results: The sectors supported by financial institutions showed significantly higher multipliers of output and rootedness compared to the unsupported ones. The differences are statistically significant and have been increasing over time, especially since 2015. The most important growth is observed in healthcare, construction, and metallurgy, indicating increased integration of these industries into the country's production structure. Conclusions: Development finance has not only a direct impact on production performance but also forms long-term structural changes in the economy. The results obtained confirm the role of financial development institutions as key mechanisms of structural transformation and indicators of institutional effectiveness of state industrial policy. Practical implications include the need to improve multiplier-based diagnostics, coordinate institutional development programs, and modernize the input-output monitoring system.
Keywords:
JEL Classification:
O11, O12, O17, R12, P51
How to cite:
Yessengeldina, A., Abayev, A., Akybayeva, G., Yussupov, U., Bayadilova, B. (2026). Development institutions and intersectoral dynamics of Kazakhstan's economy. Access to science, business, innovation in digital economy, ACCESS Press, 7(1), 79-102, https://doi.org/10.46656/access.2026.7.1(5)
References:
-
Agrarian Credit Corporation. (n.d.). Annual reports and financing programs overview. https://ar2023.agrocredit.kz/storage/settings/August2024/PH0NQ5XEQCuVaFlCyvj8.pdf, accessed: 24/10/2025
-
Ahmed F., Kousar K., Pervaiz A., Shabbir A. (2022). Do institutional quality and financial development affect sustainable economic growth? Evidence from South Asian countries. Borsa Istanbul Review 22-1 (2022) 189-196. https://doi.org/10.1016/j.bir.2021.03.005
-
Baiterek National Managing Holding. (n.d.). Annual reports. https://baiterek.gov.kz/upload/iblock/628/l1icrrdyxqyc0u8m90cou4x55z33fcs1/Baiterek_2024_RU_interactive_2.pdf, accessed: 24/10/2025
-
Beloeva, S., Venelinova, N., Petrova, M. (2025). Building competencies for managing virtual teams in local public administrations: challenges in the age of global digitalization. Baltic Journal of Economic Studies, 11(4), 252-259. https://doi.org/10.30525/2256-0742/2025-11-4-252-259
-
Clouse, C., Thorvaldson, J. & Jolley, G. J. (2023). Impact Factors: Methodological Standards for Applied Input-Output Analysis, Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), p. 1-14. DOI: 10.22004/ag.econ.339975
-
Damu Entrepreneurship Development Fund. (n.d.). Annual reports. https://damu.kz/upload/iblock/978/usc14b0azbs76dx508uubgj7iv0qrsej/%D0%93%D0%BE%D0%B4%D0%BE%D0%B2%D0%BE%D0%B9%20%D0%BE%D1%82%D1%87%D0%B5%D1%82%20%D0%B7%D0%B0%202024%20%D0%B3%D0%BE%D0%B4_default.pdf, accessed: 24/10/2025
-
Delgado, M., & Meza, L. (2020). Public investment and structural transformation in Latin America: An input-output perspective. Latin American Economic Review, 29(1), 1–25
-
Deneva, A., Hristova, V., Pavlov, D., Blazheva, V., Kostov, I., Angelova, D., Petrova, M. (2022). Geographical location as an environmental limitation for starting entrepreneurial initiatives. European Journal of Sustainable Development, Publisher: European Center of Sustainable Development, Rome, Italy, Vol 11, No.3, 2022, pp.124-136, https://doi.org/10.14207/ejsd.2022.v11n3p124
-
Development Bank of Kazakhstan. (n.d.). Sectoral financing data and performance reports. file:///Users/zamedin/Downloads/Konsolidirovannaya-finansovaya-otchetnost-za-6-mesyatsev-2025-goda-na-russ kom-yazyke.pdf, accessed: 24/10/2025
-
Diao, X., Hazell, P., & Thurlow, J. (2010). The role of agriculture in African development. World Development, 38(10), 1375–1383. https://doi.org/10.1016/j.worlddev.2009.06.011, accessed: 24/10/2025
-
Dietzenbacher, E., & Los, B. (2000). Structural decomposition techniques: Sense and sensitivity. Economic Systems Research, 12(4), 307–324. https://doi.org/10.1080/09535319800000023, accessed: 24/10/2025
-
Kazakhstan Bureau of National Statistics. (2022). Input–output tables of the Republic of Kazakhstan, 2010–2021. https://stat.gov.kz/en/industries/economy/national-accounts/?utm_source=chatgpt.com, accessed: 24/10/2025
-
Kazekami S., (2024). Linkage, sectoral productivity, and employment spread. Structural Change and Economic Dynamics 69. 108–123. https://doi.org/10.1016/j.strueco.2023.12.004
-
Lenzen, M., Moran, D., Kanemoto, K., & Geschke, A. (2012). Building EORA: A global multi-region input–output database at high country and sector resolution. Economic Systems Research, 25(1), 20–49. https://doi.org/10.1080/09535314.2013.769938, accessed: 24/10/2025
-
Leontief, W. (1986). Input-output economics (2nd ed.). Oxford University. 55-65
-
Liang Y (2022). Impact of financial development on outsourcing and aggregate productivity. Journal of Development Econimics, Volume 154. p. 1-13. https://doi.org/10.1016/j.jdeveco.2021.102770
-
Liu J., Xu K., Li J. (2024). Public development finance and firm innovation. China Economic Quarterly International, volume 4, Issue 4. Pages 266-280. https://doi.org/10.1016/j.ceqi.2025.02.001
-
Liu, X., Zhang, Z., & Wang, Y. (2012). Structural changes and economic impacts of China’s industrial upgrading: An input-output approach. China Economic Review, 23(4), 1062–1075
-
Miller, R. E., & Blair, P. D. (2009). Input-output analysis: Foundations and extensions (2nd ed.). Cambridge University. 337-343
-
Ncube, P., & Tregenna, F. (2021). Input-output linkages and interdependence between countries in Southern Africa. Development Southern Africa, 39(6), 1021–1035. https://doi.org/10.1080/0376835X.2021.1963213
-
Oosterhaven, J., & Stelder, D. (2002). Net multipliers avoid exaggerating impacts: With a bi-regional illustration for the Dutch North. Journal of Regional Science, 42(3), 533–543. https://doi.org/10.1111/1467-9787.00270
-
Rueda-Cantuche, J. M., & Amores, A. F. (2019). Using input–output models to analyze EU policies: Recent applications and future developments. JRC Technical Reports. European Commission.
-
Seitzhanov, S., Kurmanov, N., Petrova, M., Aliyev, U., Aidargaliyeva, N. (2020). Stimulation of entrepreneurs’ innovative activity: evidence from Kazakhstan. Entrepreneurship and Sustainability Issues, 7(4), 2615-2629. https://doi.org/10.9770/jesi.2020.7.4(4)
-
Simuchimba, G., Blignaut, J. N., & Sjaastad, E. (2024). Estimating the economic multipliers for wildlife-based tourism in Zambia. Development Southern Africa, 41(6), 987–1010. https://doi.org/10.1080/0376835X.2024.2357301
-
Sonis, M., Hewings, G. J. D., & Guo, J. (2000). A new image of classical key sector analysis: Minimum information decomposition of the Leontief inverse. Economic Systems Research, 12(3), 401–423. https://doi.org/10.1080/09535310050120952
-
Thi Thuy, D. P., & Nguyen Trong, H. (2021). Impacts of openness on financial development in developing countries: Using a Bayesian model averaging approach. Cogent Economics & Finance, 9(1). https://doi.org/10.1080/23322039.2021.1937848
-
Thurlow, J., Diao, X., & Davis, B. (2018). The rural investment and growth study: Using economywide modeling to inform policy and investment decisions. FAO Agricultural Development Economics Working Paper 18-01
-
Zhang, X., & Chen, Y. (2015). Public policy and structural change in China: Evidence from input–output analysis. Structural Change and Economic Dynamics, 34, 1–11
-
Yang Z, Vitenu-Sackey PA, Hao L, Tao Y. (2023). Economic freedom, inclusive growth, and financial development: A heterogeneous panel analysis of developing countries. PLoS One. 18(7):e0288346. doi: 10.1371/journal.pone.0288346. PMID: 37432915; PMCID: PMC10335674