Business Environment in Kazakhstan: Assessing Infrastructure Availability
Rakhmatullayeva D.Z. Kudasheva T.V. Kaldiyarov D.A. Urinboyev R.U. Khajiyeva A.B.
2024Institute of Economics Committee of Science MSHE RK
Economy: strategy and practice
2024#19Issue 284 - 99 pp.
The study aims to quantitatively assess the availability of various infrastructures for doing business and identify the main barriers in the infrastructure industry that hinder the ease of doing business and investment development in regions of Kazakhstan. The authors assessed infrastructure accessibility in Kazakhstan’s regions based on an SME managers’ survey. They developed an index of infrastructure availability, a practical tool for gauging infrastructure development in a specific region or country. This index is crucial for investment planning and developing relevant sectors of the national economy. The findings revealed that no region in Kazakhstan has a good infrastructure. Access to its most essential types is only at an average level, with the lowest index values observed in Almaty and East Kazakhstan regions. The analysis of SMEs’ problems with access to infrastructure highlighted bureaucracy and difficulties in obtaining permits, high wear and tear of networks, and high connection costs as the main issues. The authors underscore the increasing global economic and geopolitical risks that lead to fundamental changes in Central Asia, particularly Kazakhstan, which has excellent potential for developing transit routes between East and West. They advocate for active investment in infrastructure projects as a solution. According to expert forecasts, if Kazakhstan invests at least 4% of its GDP annually, it can completely replace and modernize the republic’s worn-out transport infrastructure by 2040, leading to significant economic benefits. The authors will use the study’s results to create regional indices of doing business in Kazakhstan.
Doing Business , Economic Benefits , Economic Planning , Infrastructure , Infrastructure Accessibility , Infrastructure Accessibility Index , Small and Medium-Sized Businesses
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Al-Farabi Kazakh National University, 71 Al-Farabi ave, Almaty, 050040, Kazakhstan
I-Marketing LLP, 30 Kasteev Str, Almaty, 050010, Kazakhstan
Zhetysu University, 187a Znansugurov str, Taldykorgan, 040009, Kazakhstan
Lund University, Box 42, Dalby, SE-221 00, Sweden
Al-Farabi Kazakh National University
I-Marketing LLP
Zhetysu University
Lund University
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