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Analysis of Causality Relationship Between the Economic Growth and the Energy Production and Technological Investments in Kazakhstan

Author

Listed:
  • Kundyz Myrzabekkyzy

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan,)

  • Bektur Keneshbayev

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan)

  • Dina I. Razakova

    (Turan University, Almaty, Kazakhstan)

  • Indira Kenzhebekova

    (Peoples Friendship University named after Academician A. Kuatbekov, Shymkent, Kazakhstan.)

  • Zhansulu Pirmanova

    (Peoples Friendship University named after Academician A. Kuatbekov, Shymkent, Kazakhstan)

Abstract

This study analyzes the causality relationship between economic growth and energy production (Electricity and Thermal Energy) and technological investments in Kazakhstan between 1993 and 2020 using Cointegration and Vector Error Correction Models (VECM), and also performs impact analysis. Cointegration analysis was used to determine whether there is a long-term relationship between the variables that became stationary after the first difference. Energy production proved to be an important contributor to the economic growth of Kazakhstan. Compared to energy production, technology investments have a more decisive effect on economic growth. Therefore, the importance of technology investments for countries has been emphasized once again.

Suggested Citation

  • Kundyz Myrzabekkyzy & Bektur Keneshbayev & Dina I. Razakova & Indira Kenzhebekova & Zhansulu Pirmanova, 2022. "Analysis of Causality Relationship Between the Economic Growth and the Energy Production and Technological Investments in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 123-126, November.
    • Handle: RePEc:eco:journ2:2022-06-16
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    References listed on IDEAS

    as
    1. Mira Nurmakhanova, 2019. "Exchange Rate and Stock Prices Interactions in Kazakhstan," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 7(2), pages 19-31.
    2. Saleheen, Khan & Farooq Ahmed, Jam & Muhammad, Shahbaz, 2012. "Electricity Consumption and Economic Growth in Kazakhstan: Fresh Evidence from a Multivariate Framework Analysis," MPRA Paper 43460, University Library of Munich, Germany, revised 20 Dec 2012.
    3. Dinmukhamed Kelesbayev & Kundyz Myrzabekkyzy & Artur Bolganbayev & Sabit Baimaganbetov, 2022. "The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 163-168.
    4. Artur Bolganbayev & Kundyz Myrzabekkyzy & Sabit Baimaganbetov & Dinmukhamed Kelesbayev, 2021. "The Effect of Oil Prices on the Economic Growth of Oil Exporting Countries Bordering the Caspian Sea: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 432-437.
    5. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    6. Shahriyar Mukhtarov & Sugra Humbatova & Ilgar Seyfullayev & Yashar Kalbiyev, 2020. "The effect of financial development on energy consumption in the case of Kazakhstan," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 75-88, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gaukhar Niyetalina & Elmira Balapanova & Almas Kuralbayev & Gulnar Lukhmanova & Artur Bolganbayev, 2023. "The Relationship of Energy Generation from Fossil Fuels, Low Carbon Resources, and Renewable Resources and Inflation within the Framework of Taylor s Rule: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 9-15, July.
    2. Gulbakhram Sartbayeva & Elmira Balapanova & Darkhan Kozhanovich Mamytkanov & Lyazat Talimova & Gulnar Lukhmanova & Kundyz Myrzabekkyzy, 2023. "The Relationship between Energy Consumption (Renewable Energy), Economic Growth and Agro-Industrial Complex in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 227-233, November.
    3. Aina B. Aidarova & Gulshat Abdimutalipovna Zhadigerova & Ainur Abilkassym & Lyailya Abdybayevna Baibulekova & Dina B. Balabekova & Saule A. Ilasheva, 2023. "Analysis of the Relationship between Energy Consumption, Foreign Direct Investment, and Labor Force Participation by Vector Error Correction Model: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 108-114, September.
    4. Baltaim Sabenova & Indira Baubekova & Gulmira Issayeva & Zarema Bigeldiyeva & Artur Bolganbayev, 2023. "Comparative Analysis of Volatility Structures of Stock Index and Energy Company Returns in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 200-206, March.
    5. Saken Ualikhanovich Abdibekov & Bauyrzhan Susaruly Kulbay & Yelena Evgenevna Gridneva & Gulnar Shaimardanovna Kaliakparova & Tolendi Aripbaevich Ashimbayev & Gulmira Amangeldiyevna Perneyeva, 2023. "The Relationship between the Share of Renewable Energy in Total Energy Consumption and Economic Growth: Kazakhstan and Turkiye Comparision," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 24-30, September.

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    More about this item

    Keywords

    Kazakhstan; GDP; Cointegration; Causality; Vector Error Correction Models;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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