Analysis of Causality Relationship Between the Economic Growth and the Energy Production and Technological Investments in Kazakhstan

Abstract

This study analyzes the causality relationship between economic growth and energy production (Electricity and Thermal Energy) and technological investments in Kazakhstan between 1993 and 2020 using Cointegration and Vector Error Correction Models (VECM), and also performs impact analysis. Cointegration analysis was used to determine whether there is a long-term relationship between the variables that became stationary after the first difference. Energy production proved to be an important contributor to the economic growth of Kazakhstan. Compared to energy production, technology investments have a more decisive effect on economic growth. Therefore, the importance of technology investments for countries has been emphasized once again.

The Relationship between Energy Consumption, Agricultural and Industrial Production, and Economic Growth: ARDL Border Value Approach in the Case of Kazakhstan

“…Kazakhstan declared its independence on December 16, 1991, following the dissolution of the USSR, and carried out noteworthy structural reforms towards the transition to a free market economy to overcome economic difficulties in this turbulent environment (Taibek et al, 2023;Bekzhanova et al, 2023;Yesbolova et al, 2024). During this period, Kazakhstan implemented various practices like introducing its currencies, ensuring price stability, keeping inflation under control, encouraging free entrepreneurship through privatizations, and implementing monetary and financial reform policies.…”

“…The economic reforms that were rapidly implemented caused problems, however, these subsided in the 2000s. As a result, Kazakhstan gained attention for its economic achievements among the states that gained independence after the USSR (Xiong et al, 2015;Myrzabekkyzy et al, 2022;Bolganbayev et al, 2021;Dyussembekova et al, 2023). In the 33 years since Kazakhstan's independence, the Kazakhstan economy has faced four major global crises.…”

“…The main factors that enabled Kazakhstan to overcome these global crises are the structural reforms in the economic field and the rich natural resources that Kazakhstan has (oil, coal, natural gas, etc.) (Mudarissov and Lee, 2014;Xiong et al, 2015;Myrzabekkyzy et al, 2022;Bolganbayev et al, 2021;Mashirova et al, 2023;Issayeva et al, 2023).…”

Comparative Analysis of Volatility Structures of Stock Index and Energy Company Returns in Kazakhstan

“…Although it was painful, this period started to bear fruit in 2000 and Kazakhstan's economy began to boom. The basis of this success lies in the structural arrangements adopted, as well as the rich natural energy resources of Kazakhstan (Myrzabekkyzy et al, 2022;Bolganbayev et al, 2022).…”

Analysis of the Effect of Oil and Energy Production on Health and Education Expenditures in Kazakhstan with Autoregressive Distributed Lag Method

“…Kazakhstan holds about 3% of the world's total oil reserves, about 1.1% of natural gas reserves, and about 3.3% of coal reserves. Thanks to the natural resources policies, Kazakhstan had become one of the fastest-growing countries in the world after gaining independence (Mudarissov and Lee, 2014;Xiong, et al, 2015;Myrzabekkyzy et al, 2022;Bolganbayev, et al, 2022). This rapid change, transformation, and growth have placed the Kazakhstan economy in second place after Russia in terms of economic size among the former Soviet republics (Mukhtarov, et al, 2020).…”