The Impact of Interregional and Country Inequality on the Dynamics of Economic Growth in Kazakhstan

Abstract

In modern realities, inequality is not only an urgent problem but is quite acutely perceived by society, especially in the post-pandemic period. This paper aims to analyze and evaluate the impact of inequality on the economic growth of Kazakhstan. In theoretical and empirical works, there are trends of both positive and negative effects of inequality on the growth of the economies of various countries. The research methodology is based on the development of the concept of interregional and country inequality. Methods such as retrospective analysis, generalization and systematization, comparative analysis, and regression analysis were applied. The information basis of the study was the database files for 16 regions of Kazakhstan and a period of 25 years from 1993 to 2018, available on the website of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan. Based on the analysis of the calculated inequality coefficients, it was determined that the gap between interregional and country inequality is insignificant. Over 25 years, there has been a considerable increase in interregional and country inequality in Kazakhstan. The econometric analysis confirmed the existence of a significant negative link between inequality and economic growth and a positive relationship between income and GRP. In general, the study’s main hypothesis on the impact of inequality on the dynamics of economic growth in Kazakhstan is confirmed by empirical calculations. Thus, when developing and defining an effective regional policy, it is necessary to take into account the impact of inequality on economic growth, as it is statistically significant.

Keywords

• неравенство
• индекс джини
• доходы
• экономический рост
• стратегия
• регион