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Convergence Across Regions in Kazakhstan

In: Geographical Labor Market Imbalances. Recent Explanations and Cures

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  • Alisher Aldashev

    (Kazach-British Technical University)

Abstract

This chapter analyzes unequal regional development in Kazakhstan. Applying the nonlinear least squares (NLS) method in presence of spatial correlation, we estimate the convergence rate of wages across Kazakh regions for the period 2003–2009. The estimated convergence rate is about 3.5% which is somewhat higher than the estimates obtained for the USA and Europe implying that half of the gap between regions is reduced in about 20 years. We do not find any significant effect of resource abundance on growth. However, human capital is an important factor contributing to growth. Our estimates indicate that a 1% increase in the share of students increases the growth rate by 0.18% points.

Suggested Citation

  • Alisher Aldashev, 2015. "Convergence Across Regions in Kazakhstan," AIEL Series in Labour Economics, in: Chiara Mussida & Francesco Pastore (ed.), Geographical Labor Market Imbalances. Recent Explanations and Cures, edition 1, chapter 5, pages 107-118, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:08-05
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    Keywords

    Artificial regression; Convergence; Kazakhstan; Nonlinear least squares; Spatial correlation;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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