DEVELOPMENT FINANCE AND ECONOMIC SPILLOVERS: STUDY OF KAZAKHSTAN’S INDUSTRIAL SUPPORT

Makhabbat Aubakirova; Gulnur Raikhanova; Serik Makysh; Gulmira Ryskeldiyeva; Gulmira Yessenova

doi:10.2478/eoik-2025-0104

Authors

Makhabbat Aubakirova L.N. Gumilyov Eurasian National University, Astana, Kazakhstan
Gulnur Raikhanova Karaganda Buketov University
Serik Makysh L.N. Gumilyov Eurasian National University, Astana, Kazakhstan
Gulmira Ryskeldiyeva Nazarbayev Intellectual School of Physics and Mathematics in Astana, Autonomous educational organization Nazarbayev Intellectual Schools
Gulmira Yessenova JSC Kazakh University of Technology and Business

DOI:

https://doi.org/10.2478/eoik-2025-0104

Keywords:

development finance, input–output multipliers, Kazakhstan, structural impact, public investment, transition economy

Abstract

This study examines the structural effects of Development Financial

Institutions (DFIs) on Kazakhstan’s economy using an input–output (I-
O) multiplier framework. Despite growing public investment through

DFIs, empirical evidence on their sectoral impact remains scarce in
the Kazakhstani context. Addressing this gap, the research integrates

manually compiled sectoral DFI support data with national I–O ta-
bles across 68 sectors for the period 2012–2023, of which 31 sectors

received institutional support. The study’s originality lies in linking
macroeconomic structural indicators-such as output multipliers and

backward integration-with financial intervention data. The model in-
cludes investment (gross fixed capital formation), intersectoral linkag-
es, and a DFI support dummy, with export and final demand variables

excluded due to multicollinearity and stationarity concerns. The find-
ings show that DFI-supported sectors are associated with significant-
ly higher multipliers, suggesting that targeted support contributes to

stronger structural effects. While investment demonstrates diminishing

returns, backward integration remains positively correlated with eco-
nomic spillovers. The practical significance of the work lies in the fact

that its conclusions can be used in shaping public policy in Kazakhstan

and developing DFI strategies aimed at increasing structural multipli-
ers and the sustainability of the national economy.

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DEVELOPMENT FINANCE AND ECONOMIC SPILLOVERS: STUDY OF KAZAKHSTAN’S INDUSTRIAL SUPPORT

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