The Effect of Electricity Generation, Thermal Energy Production, Fixed Capital Investment, and Consumer Price Index on Economic Growth in Kazakhstan

Kazakhstan Stock Exchange (KASE) is established on November 17, 1993, with the participation of 23 leading Kazakh banks under the leadership of the National Bank of the Republic of Kazakhstan. KASE has had an important position in the country's economy since then. This study comparatively analyses the volatility structures of the return of the KASE Composite Index and the returns of the oil and energy companies traded in the KASE in the period between 5.01.2021 and 4.01.2023. The preliminary test (ARCH LM) showed that the volatility structure of the past period is effective on the current period in all four returns. Based on this finding, the structure of the series was evaluated with four different models. All four return series conformed with the GARCH-M (1, 1) model. Accordingly, the finding that oil and energy companies and the stock market composite index have the same volatility structure is important for investor decisions. Moreover, the finding that any past financial shock or volatility fluctuation affects the current return will positively affect the estimation of the future value of financial assets.

Section: Introductionmentioning

confidence: 99%

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

Sabenova¹,

Baubekova

Issayeva

et al. 2023

“…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).…”

Section: Introductionmentioning

confidence: 99%

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

Taibek

Kozhamkulova

Kuralbayev

et al. 2023

This study analyzes the impact of Kazakhstan's oil and energy production between 2000 and 2020 on government expenditures on health and education. Kazakhstan’s total crude oil and natural gas production, gas fuel production and distribution, domestic general government health expenditures (% of GDP), out-of-pocket health expenditures (% of total health expenditures), and government expenditures on education (% of GDP) are included. ARDL analysis showed that oil and natural gas production has an impact on government expenditures on health and education. Moreover, the boundary value proved that this effect exists in both the short and long terms. ARDL analysis also showed that oil and natural gas production has a short-term effect on out-of-pocket health expenditures, but not in the long term. These findings can be interpreted as there are scientific grounds to expect that the impact of energy production on government investments in education and health will continue in the future.

“…This transition period has been successful thanks to Kazakhstan's rich natural resources. Kazakhstan has about 3% of the world's total oil reserves, about 1.1% of natural gas reserves, and about 3.3% of coal reserves, and its share in the world markets is growing even more with the newly discovered natural gas and oil deposits, especially on the Caspian coast (Mudarissov and Lee, 2014;Xiong et al, 2015;Bolganbayev et al, 2022;Myrzabekkyzy et al, 2022;Mashirova et al, 2023). Kazakhstan has rich fossil energy sources and renewable energy resources such as hydroelectric, solar, wind, geothermal, and biofuels (Xiong et al, 2015;Ongarova, 2018;Taibek et al, 2023;Sabenova et al, 2023;Niyetalina et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Freight and Passenger Transportation and Energy Production on Economic Growth in the Framework of Macro-Economic Indicators: The Case of Kazakhstan

Dyussembekova,

Aidarova,

Balapanova

et al. 2023

This study analyzes the impact of freight and passenger transport and energy production on the economic growth of Kazakhstan in the period 1996-2021 using the VAR model. The analysis also includes control variables such as energy production, economic growth, exchange rates, inflation, interest rates, foreign direct investment, and unemployment. The research uses data from the World Bank, the Central Bank of Kazakhstan, and the National Bureau of Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan. The findings showed that freight transportation's current and one-term lagged value affects economic growth. After determining the significance of the effect, we examined its causality. The findings concluded that none of the independent variables had a causal effect on economic growth, whereas the model with all three independent variables has. The study chose a long study interval and determined the data frequency as annual. The data period may be chosen as monthly or quarterly, and the effects of fluctuations during the year may be examined separately. As the timeline graph shows, the Covid-19 period created a significant statistical disruption for passenger transport. Future researchers may analyze this effect using the series from the pandemic period.