Addressing the growth and employment effects of the extractive industries: white and black box illustrations from Kazakhstan

Sadik-Zada E. R.

POST-COMMUNIST ECONOMIES, vol.33, no.4, pp.402-434, 2021 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 4
  • Publication Date: 2021
  • Doi Number: 10.1080/14631377.2020.1745557
  • Journal Name: POST-COMMUNIST ECONOMIES
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, American Bibliography of Slavic & Eastern European Studies (ABSEES), Business Source Elite, Business Source Premier, EconLit, Geobase, Humanities Abstracts, Index Islamicus
  • Page Numbers: pp.402-434
  • Azerbaijan State University of Economics (UNEC) Affiliated: No

Abstract

This enquiry addresses production and employment effects, which emanate from the extractive industries of Kazakhstan. To this end, the study employs static input-output models (IOMs) of Kazakhstan for the years 2007, 2010, 2012 and 2017 and dynamic nonlinear autoregressive distributed lag (NARDL) models for the period 1995-2018. IOMs show that extractives in Kazakhstan exhibit relatively strong links to domestic manufacturing. NARDL estimators reveal a positive relationship between commodity revenues and manufacturing value added in the commodity revenue boom phase and a high level of resilience of Kazakh manufacturing to the downward movements of the commodity revenues. Commodity revenues have a statistically significant positive impact on the aggregate employment rate. The study does not detect asymmetries concerning the job creation effects of the manufacturing sector.