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Central Asian Economic Review

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No 1 (2023)
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STATE AND BUSINESS: THEORY AND PRACTICE OF MANAGEMENT

6-21 294
Abstract

Purpose of the research. This paper studies the effect of spatial agglomeration on firms’ total factor productivity in Kazakhstan using panel data from 2009 to 2017.

Methodology. We employ a two-stage estimation strategy and control for endogeneity biases by making use of the GMM approach. The firm-level data is obtained from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan.

Originality / value of the research. This study contributes to an empirical study of spatial concentration and firm-level productivity in developing countries and provides valuable insights for policymakers to consider before implementing government programs.

Findings. The results suggest that productivity increases with clustering: a 10 % increase in the number of employees of the neighboring firms inside the same industry increases firm-level productivity by 1.36 %, while a 10 % increase in employment in other industries enhances firm performance by 1.95 %. The productivity gains are higher at the 2-digit regional level rather than at the 9-digit sub-regional level of geographical aggregation, implying that the denser geography increases firms’ performance.

22-33 365
Abstract

The purpose of the study to determine the main stages of the development of the functioning of public-private partnership (hereinafter – PPP) in Kazakhstan and to assess the PPP based on the analysis of the experience of the Kazakh PPP model.

Methodology. The scientific article uses the works of foreign and domestic scientists, regulatory legal acts and other official sources. The study uses a systematic approach and a method of comparative analysis.

Originality / value of research. The value of the research lies in the practical significance of the scientific results, namely, the improvement of the institutional and legal mechanisms of PPP for the interaction of government agencies and business entities in order to increase the efficiency of the implementation of infrastructure and socially significant projects.

Findings. Research results allowed us to determine how important it is to study the institutional and legal basis of the PPP mechanism in order to attract private and additional investments. Through a comparative analysis, the main stages of the development of public-private partnership in Kazakhstan are identified, an assessment of institutional and legal aspects is given and the main directions for improving the development of this tool are identified. The practical significance lies in the fact that the research materials can be used to obtain practical recommendations, taking into account the specifics of PPP projects in Kazakhstan.

33-47 427
Abstract

The purpose of the study is to draw attention to issues related to the effectiveness of distance employment in public administration system in the Republic of Kazakhstan, during COVID-19 pandemic and at the present time. The approach to the organization of remote work of civil servants in Kazakhstan is becoming one of the important objects of public attention, as they have a great impact on quality of life and well-being of the population.

The article examines administrative measures taken by the state in the context of the pandemic in order to create conditions for new flexible forms of employment in the public sector of Kazakhstan, and also presents the assessment of assess the effectiveness of the current state of remote work by civil servants.

Methodology. The study is based on scientific papers on the topic of remote employment in the public sector, collected from international databases Scopus, Web of Science, Russian and Kazakh scientific journals, also based on statistical data, analysis of individual measures taken by the Government of the Republic of Kazakhstan and a sociological survey of civil servants.

Originality / value of the research. The analysis allows us to conclude that Kazakhstan pays great attention to improving the efficiency of remote work in the public administration system. Results of the sociological survey show that, despite the positive impact of remote work on the physical and psychological state of civil servants, levels of digital literacy, digital security, material and technical equipment are insufficient and require improvements at the legislative level.

Findings. Based on the data obtained, the authors propose a number of recommendations to improve the efficiency of distance employment in the public administration system of the Republic of Kazakhstan.

47-59 57620
Abstract

Purpose of the research is to study the level of public awareness, transparency and trust in the authorities in the framework of the state policy for the construction of a nuclear power plant.

Methodology. In this work, both qualitative and quantitative research methods are applied. The study uses an online sociological survey among the population to analyze the impact of the ongoing state policy on the energy security of the country, namely the construction of nuclear power plants. In this work, an online survey based on a Google Survey was used. The survey involved 108 respondents. Also presented in the work are information materials of state institutions, information and news articles, as well as a review of international experience in the field of nuclear energy. Also, for the analysis and evaluation of external factors for developing nuclear energy, we considered PEST-analysis (Political, Economic, Social, and Technological factors).

Originality / value of the research. Society plays an important role in solving the most urgent and acute political issues in the country. The awareness and opinion of citizens contributes to the development in society of a positive attitude towards the political decisions made in the state. Over the past two decades, in some countries, policies to reduce energy costs and targets for reducing greenhouse gas emissions have contributed to the introduction of clean energy, including nuclear energy. In Kazakhstan, the issue of energy security has always been relevant and has never been removed from the agenda. Today, despite all the eff orts of the state, problems in the energy sector are not decreasing.

Findings. This paper analyses the statements of many authors who believe that the degree of public awareness depends on the transparency and informational openness of state bodies. A sociological study was used in this work in order to empirically prove the influence of these factors. The survey contains the answers of the respondents. The analysis turned out to be quite interesting. As a result, the presence of a positive relationship between the level of information provided by state institutions and the awareness of citizens has been clearly demonstrated.

NATIONAL ECONOMY: DEVELOPMENT VECTORS

60-71 740
Abstract

The purpose of the study is to analyze the current state of socio–economic development of large cities of Kazakhstan, identify problems and develop proposals for their development.

Methodology. In the course of the work, statistical and comparative economic analysis, methods of generalization and systematization were used. To identify the strengths and weaknesses, threats and advantages of the development of large cities, a SWOT analysis was conducted. With the help of the logical method, potential directions for the development of large cities of Kazakhstan were identified.

Originality / value of the research. The study analyzed the socio-economic development of large cities, identified the strengths and weaknesses of their development, as well as identified threats and opportunities for the development of large cities of the Republic of Kazakhstan. Based on the analysis, the directions of development of large cities are proposed.

Findings. During the analysis of the socio-economic development of large cities, it was revealed that in all large cities there is a certain factor determining its development. For example, in the cities of Aktau and Atyrau, a high income of the population is fixed, since the cities specialize in the extraction and processing of hydrocarbon raw materials, etc. The problems hindering the development of large cities include a high increase in the number of unemployed, a shortage of housing stock, the deterioration of utility networks, an increase in the number of citizens in need of social support, and a high level of atmospheric pollution. The directions of development of large cities of the Republic of Kazakhstan are proposed.

72-83 447
Abstract

This article explores and provides an empirical assessment of the state of distribution of food products from direct producers to end consumers in terms of an effective system of commodity supply to the regions of Kazakhstan based on a review of specialized literature and information.

The purpose of the research is to give recommendations and proposals for the creation of wholesale distribution centers that will promote the efficient and optimal movement of agricultural products directly from producers to consumers.

Research methodology. We used heuristic research methods based on the method of expert assessments, interview review, and, also, used situational and reflexive approaches to analyze available and objective information.

The originality of the research. We did a general analysis of the distribution of food products based on a review of specialized literature revealed many problems in this area. We have studied foreign experience and give recommendations and proposals for the creation of effective wholesale distribution centers in major cities of Kazakhstan.

Research results. According to the research results, we simplified scheme of the food supply chain from agricultural producers to consumers is proposed, excluding unnecessary intermediaries. The problems and prospects for the development of wholesale distribution centers are identified and specified. The main priorities of the development of the wholesale distribution centers are highlighted.

83-97 755
Abstract

The purpose of this study is to determine the current level of ecotourism research in tourism environmental management of Kazakhstan and to perform a comparison assessment in order to gain a better understanding through critical analysis and the identification of gaps for future studies.

Methodology. Analysis, comparison, and literature review have been used as the methods of this work.

The originality / value of the study is an accurate analysis of the present situation of ecotourism research in Kazakhstan and Bhutan. The Bhutanese example of ecotourism research could contribute for the further development of tourism environmental management in Kazakhstan. 

Findings. The authors found a few main problems of ecotourism research, including having lack of comprehensive data and information and problems with regulatory legal acts and documents in Kazakhstan. Therefore, right ecotourism study can facilitate to the development of the tourism environmental management in Kazakhstan.

Through analyzing the Bhutanese practice of ecotourism research, the authors found a gap in Kazakhstan tourism environmental management where further research should be focused. Consequently, the authors gave a few recommendations on the further development of ecotourism research in Kazakhstan, as working with closely with foreign experienced researchers, improving the protected areas websites, establishing a trust fund with other countries, improving government documents on tourism environmental management, publishing more reports in English, and providing more grants and scholarships.

97-110 317
Abstract

Research on the concept of competition in tourism has expanded over the past twenty years. Existing theories and research on competitive relationships focus on competition or cooperation, where one type of relationship can threaten or support. Today, however, in the literature, the strategic relationship between competing companies has evolved from competition and cooperation to coopetition.

The purpose of the study is to provide a modern overview of this topic using bibliometric analysis in order to better understand how this triad has developed over time in the tourism industry.

Methodology. This study used a combination of bibliometric methods, such as co-authorship between authors and countries, and co-occurrence of author keywords. In addition, the most influential countries, institutions, publications and authors were identified based on publications and citations. A total of 302 articles published between 2000 and 2022 were retrieved from the Scopus database.

The originality / value of the study is to determine the relationship of published articles on the topic of strategic relations, such as competition and cooperation between enterprises in the field of tourism, to analyze the evolution of research works, to identify current topics, to predict future research directions. Information obtained from research can be used to improve the quality of future articles.

The findings show that since 2000 the number of publications has increased, as well as the interest of scientists in this field. Published articles have been published in 55 countries. The top 10 countries with the most articles account for 89,73 % of all papers. The research center that published the most articles, the productive country that published co-authors, and the author that published the most articles were identified. The most cited articles are from Elsevier publishing house. During the analysis of keywords, 3 clusters were identified.

111-121 988
Abstract

The purpose of the study of this article is to reveal the features of the development of the digital economy of agro-industrial complex through the introduction of digital and innovative technologies in the work of the agricultural sector of Kazakhstan and the effectiveness of their use.

Methodology. Scientific methods such as analysis, collection and processing of primary data, statistical observation and comparison, comparative methods were applied in the work on this article.

Originality / value of the study. The value of the study lies in the formation of scientific, practical and methodological provisions, including various aspects of management of innovative digital technologies in agriculture.

Findings. The main trends of digital transformation in agro-industrial production in Kazakhstan are considered. The prerequisites for the implementation of digital technologies in agriculture and their benefits are identified. The analysis of the use of innovative digital technologies in agriculture, where economic evaluation of the effectiveness of robotic technologies in crop production was carried out.

INVESTMENT, FINANCE AND ACCOUNTING

122-136 527
Abstract

The purpose of the research is to assess the degree of influence of systemically important banks on the stability of the financial system of Kazakhstan, which determines the level of development and stability of the national economy as a whole, based on the indicators proposed by the International Monetary Fund.

Methodology. Among the research methods used, an analysis, comparison and generalization methods, as well as statistical analysis method and method of classification can be distinguished. The article considers scientific works concerning the issues of the influence of large banks on financial stability. The statistical data of the national regulator, the financial statements of Kazakhstan banks, the recommended IMF indicators on the research issue were studied.

Originality / value of the research. The relevance of this research is due to the fact that actually, in the context of globalization, the importance of issues related to the development of the national economy of the country, ensuring its stability and efficiency is increased. The core of the financial system of Kazakhstan is the banking sector, share of which in the financial sector makes about 80 %. In this regard, this article is aimed at solving topical issues related to the influence of systemically important banks both on ensuring the financial stability of Kazakhstan and development of the national economy as a whole.

Findings. The main objectives of the research are due to the lack of theoretical and methodological development of this issue, its growing practical relevance. The research findings suggest that the large banking institutions of Kazakhstan make significant influence on the indicators of the country's financial stability. Also, on the basis of analysis of publications from other scientists on this research topic, it was made own findings and conclusions. The materials of the article are of practical value and can be used to develop the modern methods for strengthening the financial stability of the country.

136-146 319
Abstract

The purpose of the study is that in the financial market, in addition to the money market, there are markets for the purchase and sale of assets in future periods. However, the parties to such contracts have the right or obligation to sell or purchase a financial asset at a fixed price on a fixed date. Such contracts are called derivative financial instruments, since it is believed that the contract price is directly related to the change in the price of the underlying asset. Derivative financial instruments help not only to fix future prices, but also to insure against unfavorable exchange rate volatility. To fulfill the latter function, the country's economy must have a market of derivative financial instruments and a market of underlying assets.

Methodology. The methodological basis of the research is the dialectical method of cognition. In the process of research, both general scientific methods (analysis, synthesis, deduction, classification, systematic approach) and special methodological techniques (accounting and tax accounting) are used.

Originality / value of the research. In the conditions of instability of the world economy, the accounting of derivative financial instruments as a mechanism of crisis management and regulation in the country, stabilization of the efficiency of business portfolios of economic entities occupies an important place. The practical significance of this scientific article, designed to reflect the specifics of the organization of accounting for financial instruments in the financial risk management system of business owners in an unstable financial crisis, is considered to be quite high.

Therefore, in this scientific article we will give a description of theoretical scientific and practical approaches to the peculiarities of accounting for financial instruments.

Findings. The article reflects the methods of regulation of accounting for derivative financial instruments through the standards of IFRS 32 «Financial Instruments: provision of information», IFRS 7 «Financial instruments: disclosure of information», IFRS 9 «Financial Instruments». Based on the data, the essence of hedging will be reflected in the accounting and reporting system.

147-163 441
Abstract

The purpose of this research: defining the essence and types of business models in internal audit and identifying its main elements.

Methodology: in order to achieve the goal of the research the general scientific methods were applied: the method of content analysis helped to identify the main scientific directions related to the research of typology of internal audit effectiveness; the method of a systematic approach helped to identify and construct the main types of business models of internal audit effectiveness; the structural-functional method helped to structure information into the business models and to set the relations between its elements according to the functions; the method of graphic interpretation made it possible to visually present the developed business models based on information obtained.

Originality / value of the research: The contribution of this empirical work is the disclosure of information about different business models in internal audit based on the latest scientific articles from 2019-2021 on the databases JSTOR (https://www.jstor.org/), EBSCHOST (https://search.ebscohost.com/), Oxford Scholarship Online (https://academic.oup.com/) and their graphic visualization.

Findings: the article explains the conceptual approaches to the essence of business models of internal audit services.

The main components of the internal audit effectiveness model are identified. The main types of internal audit models used by companies have been developed and graphically presented. They are «customized» model, a «outsourced» model and an «insourced» model.

BUSINESS AND GOVERNANCE: ISSUES AND SOLUTIONS

164-176 548
Abstract

The purpose of the study is to improve understanding in the field of talent management, to study the meanings, main practices and to reveal the relationship of Talent Management with other functions of Human Resource Management for the possibility of using it in the practice of improving the quality of personnel management.

Methodology. The article uses desk research to conduct a general review of the literature, which is fundamental to tracking evolution, professional development, and key talent management practices.

The originality / value of the study lies in the fact that Talent Management has become one of the important strategic directions in organizations and in business in general today. Despite the importance of talent development, research in this area is still scarce. The authors of this article carried out a comparative analysis of research in the field of Talent Management. This analysis shows the importance of implementing the concept of Talent Management for competitive advantage in today's business realities.

Findings. To achieve these goals, existing studies were analyzed, as well as recently published articles in this field. The talent management practice presented in the study is important for Kazakhstani companies in the modern conditions of labor organization.



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ISSN 2789-4398 (Print)
ISSN 2789-4401 (Online)